Far-right activist Blair Cottrell has been knocked back in his bid to fight for “free speech” in the High Court but will continue his campaign in Victoria’s County Court.

The leader of the United Patriots Front appeared in the County Court on Tuesday to appeal his conviction for inciting hatred, contempt and ridicule of Muslims after making a video beheading a dummy in protest of a Bendigo mosque.

Cottrell and supporters Neil Erikson and Christopher Neil Shortis were convicted in September 2017 and fined $2000 each.

Lawyer John Bolton had lodged an application with the High Court, arguing Cottrell had been charged with an “invalid law” under the Australian Constitution.

Mr Bolton previously told AAP that “free speech” was protected under the constitution, “which protects political discourse”.

However, Mr Bolton told Judge Lisa Hannan on Tuesday the High Court had dismissed the application, referring the matter back to Victoria’s County Court.

The lawyer said he would now argue in the County Court there was “no such class of persons as Muslims” that could be offended by the video, given the variety among the Islamic faith.

“Who is this supposed to have caused people to think bad thoughts about?” he argued, adding he’d examine “what ‘Muslim’ means”.

Mr Bolton also asked Judge Hannan to hear the “constitutional matter”, requiring her to notify the attorney-general.

But Judge Hannan said she didn’t have the power to determine a constitutional matter.

“It’s being drawn out deliberately, I think, probably to see how much money we’ve got,” Cottrell told reporters of the matter outside court.

“I’m not going to give up.” The appeal was set down for a 10-day hearing on August 12, which Judge Hannan said she thought was too long.

Cottrell will return to court on June 5 for a directions hearing.