The United States says Majid Kakavand, 37, bought sensitive American electronics over the Internet and disguised that their final destination was Iran by routing them through Malaysia, where he had set up a front company.

Kakavand's case and several others have showcased how the United States is doggedly going after people accused of procuring technology or weapons for Iran's military, in many cases seeking help from foreign countries.

Yet the court's ruling shows that such cooperation is not simple. Kakavand's case has dragged on for 14 months since his arrest as officials tried to determine if his business dealings violated French law as well as US law. The court could not hand him over merely for breaking US laws that have no counterpart in France.

The case has sensitive diplomatic implications in three countries — especially in France, which has taken a tough stance on Iran's nuclear ambitions but nonetheless has business and oil interests there. Another source of diplomatic tension is the case of a young French academic in Iran who pleaded innocent to spying charges at a mass trial.

The court did not immediately release its reasoning.

A state prosecutor had opposed the US request, contesting the basic claim that products Kakavand bought could be used for military purposes.

The court had based its opinion on a report from France's General Directorate for Armaments. It said the technologies in question, including capacitors, inductors, resistors, sensors and connectors, were not considered "dual use" items having both commercial and military applications.

Kakavand's lawyers argued that he violated no laws in France or the European Union, which have no general trade embargo on Iran like the US has. One lawyer, Diane Francois, has accused the US of trying to enforce its embargo in other countries.

The US indictment accuses Kakavand of exporting goods to an embargoed country, money laundering, smuggling goods and other counts. It says Kakavand did not have required export licenses from the US Treasury Department.

It also says the goods were sent to Iran Electronics Industries, or IEI, and Iran Communication Industries — both designated for restriction in 2008 by the United States for their role in Iran's nuclear and ballistic missile program, according to the US Department of Justice.

The European Union placed restrictions on IEI in June 2008, but Kakavand's lawyers said the transactions at issue predated them.

Kakavand was taken into custody in March 2009 as he arrived in Paris for a vacation with his wife. He was held in La Sante prison until Aug. 26, then released on condition he stay in Paris.