Larry Flynt Productions Inc. failed to win the court in a case of wrong termination involving a mobile company.

Appellate Judge Richard C. Neal ruled recently that LFP, publisher of Hustler Magazine, wrongfully terminated Giant Mobile as its exclusive distributor of adult content for mobile phones.

Giant Mobile, Santa Monica, CA, claims that LFP fabricated an excuse and reneged on its deal to license Hustler and other LFP content to Giant Mobile for mobile distribution. The company claims that LFP did so in order to enter into a more lucrative deal with another distributor.

Giant Mobile originally filed suit against the Hustler publisher in 2006 for breach of contract and sought damages of $23 million. Though Judge Neal ruled in favor of Giant Mobile after an approximately two-week-long trial, details on the damages awarded, if any, were not disclosed at the time of this report.

A representative from Giant Mobile claims the company was motivated to take Mr. Flynt head-on to avoid damage to Giant's reputation in the mobile industry.

Giant Mobile secured a long-term exclusive contract for Hustler-brand adult content for mobile phones long before mainstream companies in the United States recognized the potential use of such adult content in Europe and Asia, where downloading adult fare on mobile phones is legal.

The company is currently distributing Digital Desire and Teravision Inc. content in the U.S., Europe, South America and Asia. It also develops games for mobile distribution, sub-licenses content to video game publishers for use in video games and develops mobile distribution and billing platforms for companies seeking this type of technology.

In addition to boosting its distribution of Digital Desire and Teravision content, Giant Mobile wants to add more adult content to offer to its worldwide distribution network, the company said.