Biologist Stefan Lanka made the offer on his website in 2011, but rejected the six scientific studies Dr David Bardens provided as proof.
Lanka argued during the Ravensburg district court hearing that measles "is a psychosomatic illness," the local Suedkurier newspaper reported.
But court spokesman Matthias Geiser told The Associated Press today the judges disagreed after hearing more than three hours of arguments and expert testimony.
"The court had no doubt about the existence of the measles virus," it said in a statement.