Rijo Jackson also testified he saw Jackson’s accuser and his brother steal money and suggested they may have taken some wine.
He told Santa Maria court, California, he had stayed with the boys in the guest cottage at Neverland in early 2003.
They turned to a television station showing naked women and started masturbating under the covers, suggesting he do the same, he claimed.
“I said I didn’t want to ‘cause it was nasty,” he told the court.
Under cross-examination he said he had fled to Jackson’s bedroom and told the pop star what the boys were watching on TV.
Rijo Jackson also claimed he had seen the accuser steal money from kitchen drawers and take some crystals from an office.
Rijo Jackson’s sister, Simone Jackson, 16, has also testified she saw the boy and his brother take bottles of wine.
Both the accuser and his brother Star have claimed Jackson introduced them to masturbation and told the court they had not engaged in such activities before going to Neverland.
Christian Robinson, who helped produce the rebuttal videos to defend Jackson in the wake of Martin Bashir’s damaging documentary, told the court interviews with the singer’s ex-wife Debbie Rowe and the accuser’s family were not scripted.