DirecTV sues Playboy, Spice

DirecTV, the largest U.S. satellite-television provider, sued Playboy Enterprises Inc. and its Spice Hot Entertainment unit, accusing the adult program providers of breach of contract.

Playboy and Spice aren't complying with a "most favored nation" contract provision that guarantees DirecTV the same terms that any other distributor gets, the satellite-TV company said in a complaint filed today in California Superior Court in Los Angeles.

Under the contract, DirecTV can ask an independent auditor to examine Playboy's books to ensure that no other distributor gets better terms for showing the programs, according to the complaint. The auditor's findings aren't shared with DirecTV beyond confirmation that the contract's most favored nation clause is met, according to the complaint.

After an August 2009 audit, DirecTV didn't get confirmation from the auditor that Playboy and Spice were complying with the contract, El Segundo, California-based DirecTV said. Playboy and Spice haven't offered DirecTV better terms and they haven't authorized the auditor to disclose its finding to DirecTV, according to the complaint.

Matthew Pakula, a spokesman for Chicago-based Playboy Enterprises, didn't immediately return a call to his office after business hours.

The case is DirecTV v. Playboy Enterprises, BC434681, Superior Court of California (Los Angeles County).