The seventh seeded Indo-Czech pair lost 6-7 (3-7), 2-6 on Centre Court last evening.
Andy Roddick and Juan Carlos Ferrero will contest the Cincinnati Masters final on Sunday.
The Swiss beat Russian Svetlana Kuznetsova in the 7-6, 6-3 in their quarter-final match the Rogers Cup.
Ferrero will meet fellow-Spaniard Tommy Robredo, who upset third seed Ivan Ljubicic of Croatia 7-6, 6-2 to reach the semi-finals of the Cincinnati Masters.
Paes and Martin Damm beat Lukas Dlouhy and Pavel Vizner of the Czech Republic in the second round of the Cincinnati Open.
The world No. 1 suffered his first defeat before a final for 14 months in the second round of the Cincinnati Masters.
The world No. 1 was twice made to come from behind for his 55th consecutive win on North American hardcourts, in the Cincinnati Masters.
The fifth seed became the first major casualty at the Cincinnati Masters, losing in the opening round.
The world number one overcame a rocky start to beat the Frenchman in the final of the Toronto Masters.
Chronic back pains forced the American crowd-favourite to withdraw from the next week's Cincinnati Masters, tournament officials said on Saturday.
The duo lost to wild card entrants Ana Ivanovic and Maria Kirilenko 7-6(2), 6-2 in the first round of the Los Angeles Open.
No official reason was given for Andre Agassi pulling out of the Canadian Open.
The Belgian battled past Jelena Jankovic 5-7, 6-2, 6-2 in the second round of the Bank of the West Classic
Patty Schnyder admitted that she found it difficult to read Sania's game during their quarterfinal at Cincinnati.
Serena Williams's impressive return from injury ended when she lost 6-2, 6-3 to Russian Vera Zvonareva in the Cincinnati Open semi-finals on Saturday.
The Indian ace was beaten by the top seeded Swiss girl 6-7(7), 5-7 in the quarter-finals.
The third seeds beat the Chinese-Uzbek pair of Meng Yuan and Varvara Lepchenko in the quarter-finals of the Cincinnati Open.
Sania Mirza and Marta Domachowska beat Natalie Grandin and Milagros Sequera 6-4, 6-3 in the first round in Cincinnati
She will face the Serbian in the first round of Cincinnati Open in Ohio on Monday.
The ex-world number one is confident she can again become a dominating force on the WTA Tour.
US-based Delta Airlines on Monday said it would start a direct flight between Mumbai and New York later this year.
Tommy Robredo won his first Masters Series title, defeating Radek Stepanek 6-1, 6-3, 6-3 in the final in Hamburg
Tommy Robredo reached the final of a Masters Series event for the first time when he beat Mario Ancic 7-5, 6-4
Roger Federer is bidding to become the first man in the modern era to win the title for a fourth consecutive time.
The world No.1 maintained his stranglehold over the Croat to lift his second straight Nasdaq-100 Open title.
The world number one battled back from a break down in the final set to fend off the Aussie and reach the final of the Cincinnati Masters.
Rafael Nadal was forced to retire with cramps while Carlos Moya defeated Novak Djokovic.
World number one Roger Federer and Andy Roddick also advanced into the third round.
Indian American Piyush Singh has been named as vice president of Cincinnati-based American Financial Group Inc.
Venus Williams unleashed the fastest serve by a woman at a grand slam as the American kept the Stars and Stripes fluttering at the French Open on Wednesday.
Australian Open champion Marat Safin withdrew from the Hopman Cup in Perth due to a long-standing knee injury
The duo were named Russia's top players by the country's tennis federation at its annual awards gala on Saturday.
The $750,000 each awards are intended to support established, independent physician-scientists who are dedicated to translational research -- the two-way transfer between laboratory research and patient treatment.
The Australian Open champion has not fully recovered from a knee injury and will miss next month's Masters Cup in Shanghai.
American Airlines, the world's largest airline, on Friday, signed a code-share agreement with Air Sahara for its daily nonstop service between Chicago O'Hare International Airport and New Delhi
World number one Roger Federer suffered a stunning 7-5, 6-2 upset defeat by Argentine Guillermo Canas in the Pacific Life Open second round on Sunday.