I'm sure you're very upset that the school seems to be taking no action against bullying in your childs school. It's good to hear that you first tried to alleviate the problem by talking to the counselor and principal. That was the right way to begin adressing the issue. I'm sorry to hear that their response was that they couldn't do anything to help you. It is the teachers and administration of a school that set the tone for students, so it's unfortunate that they are unwilling to do anything to help you or your child.
If you feel like bullying is still an issue that needs to be adressed, take your concerns higher up in the school district by talking to the school board, or superintendent for your school or district. Make sure that you are documenting specific incidences of bullying on paper. When you meet with the school about your concerns bring written documentation of those incidences and the initial response from the counselor and principal.
Stay with the issue until you feel like some action has been taken. Chances are, your child is not the only one experiencing bullying. Sometimes it takes just one person to lead the path of bringing bullying to the forefront of the minds of school administration. Don't be afraid to take the lead and get help for those kids that are not being treated respectfully at school.
i would talk to your local pta and then the school board and if that dont gain any attention contact your schools superintendt and last an attorney.if you make enough noise someone will take notice trust me you arent the only one dealing with this problem.i like all the signs they put up in the schools NO BULLING ZONES! but it is still happening hope this helps