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Bell plans to let Penthouse magazine, its Web outlets and other ventures market one another.
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If Miley does sue, the case would be similar to the claim filed by Anna Kournikova against Penthouse magazine back in 2002.
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They also publish Penthouse magazine and operate various related businesses.
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From public scandal -- she stepped down as the first black Miss America after nude photos of her appeared in Penthouse magazine -- to Broadway triumph, Williams has been on the celebrity radar for decades.
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Defense attorney Robert Shapiro then told the court that another journalist, Joseph Bosco, used the same information for a story in Penthouse magazine and would testify that his source was a member of the Los Angeles Police Department.
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Penthouse, the magazine, with only 12 pages of ads in the 150-page March issue, will never be a powerhouse alone.
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Penthouse made Bob Guccione, who created the magazine in 1965, a rich man for a while.
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Former Penthouse editor Mark Healy recalls a heated conversation last spring with his then boss, Penthouse Media Group Chief Executive Marc Bell, who was angry about a magazine item that tweaked a celebrity.
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