Laugh Factory owner: Jackson should pay for N-word

Now that Jackson has let the word slip out, Masada says he wants the civil rights leader to do what comics do every time they say the word on a Laugh Factory stage--pay a fine.

"Unfortunately, Jesse Jackson has broken his own principles," Masada told The Associated Press on Thursday. "Jesse embraced the notion of fining talent for using such a word and he should be held to his own standards."

Fox News confirmed Thursday that Jackson used the word during a break in a TV interview when he criticized Democratic presidential candidate Barack Obama.

Jackson, who is traveling in Spain, apologized in a statement Wednesday for "hurtful words" but didn't offer specifics.

Masada said he fines comics $50 for every time they use the word in their act, and he wants Jackson to pay the same amount, to the Museum of Tolerance in Los Angeles.

Masada banned use of the word at his nightclubs shortly after Richards' outburst, and although he said several comics still use it in their act, he added that they are quick to pay the fines to charity.

(This version CORRECTS Corrects to 'principles,' sted 'principals,' in 3rd graf. AP Video.)