Corey Maygard, 25, captured the video last Friday because he thought police were using excessive force to detain a man near the Salvation Army in downtown Edmonton.
"They had the one guy somewhat hog-tied behind his back," Maygard said. "And they were dragging him."
Maygard says one of the officers approached and told him to stop recording. He refused.
"He at that point turned me around, read me my rights," Maygard said. "Took my phone. Turned the video off and arrested me for obstruction of justice."
Maygard was taken to downtown police headquarters where he spent the night in cells. The charge was withdrawn in court on Monday.
"There is nothing that prevents an individual from videoing an event that's taking place in public," his lawyer Danny Lynn said.
The court ordered police to return all of Maygard's belongings, including his iPhone. However, the phone hasn't yet been found.
Police say the information isn't yet in their property and exhibit system. This can take time as there is a large amount of property that needs to be processed each day.
They say they are doing their best to track it down as soon as possible.