Paes-Dlouhy, seeded third, lost 3-6 2-6 to the unseeded American-Bahamas pair.
This is third time in a row that Paes and Dlouhy have not gone beyond second round on the Tour. Last week they lost at the same stage at Toronto Masters and before that at Wimbledon.
Paes and Dlouhy shared USD 9670 as prize money and earned 90 ranking points each.
Paes' ouster means Mahesh Bhupathi remains as the lone Indian in fray in the USD 24,30,000 hard court event.
Bhupathi and his Belarusian pair Max Mirnyi are up against Mariusz Fyrstenberg and Marcin Matkowski, who had ousted Rohan Bopanna and Aiam-ul-Haq Qureshi, in their second round match.
India's numero uno singles player Somdev Devvarman had lost in the first round of the singles event.