The 28-year-old "Tik Tok" singer had sought to nullify her recording contract because it brought her into contact with super-producer Dr Luke, whose real name is Luke Gottwald, reported New York Daily News.
Kesha claims Dr Luke drugged her with a pill that made her black out and raped her shortly after her 18th birthday in California. He was never criminally charged.
Sony has offered to let her work with another producer, but Kesha said she fears the company won't promote her music as heavily if she's not working with Gottwald, their biggest hitmaker.
Dozens of fans rallied outside the courthouse in support of the shellshocked singer as she emerged from the courthouse.
"Free Kesha Now! Free Kesha Now!" they chanted as the singer walked down the front steps with her entourage.
Kesha declined to speak with reporters.
Manhattan Supreme Court Justice Shirley Kornreich said Sony would suffer irreparable harm if Kesha was not compelled to abide by a contract that requires her to make six more albums with the company.
The judge said that granting the singer's request to nullify her deal would undermine the state's laws governing contracts and the court couldn't do that.
"There are people all over the world who love you. And I can say truly I am in awe of your bravery," Lady Gaga wrote to the singer.
"My heart is with @KeshaRose," Ariana Grande tweeted, with a purple heart emoji.
Iggy Azalea also expressed her thoughts, writing, "If two people don't want to be in business with one another it seems very cruel for one to hold the other in a contract. I'm not accusing anyone of anything, but I believe Kesha deserves the ability to move forward, create and earn a living.
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