The tabloid agency is seeking over $7.5 million dollars in damages from Perez for what they say is a loss of profits and injury to their reputation. The photo agency believes their pics have played a large part in the success and profitability of perezhilton.com, which reportedly charges between $9,000 and $16,000 a week for ad space. It costs plenty to appear next to Britney's crotch!

Perez tells TMZ, "I have yet to be personally served with this lawsuit. My lawyers and I will address the situation when we have the opportunity to review the materials."

Perez Hilton is to be hit by a multi-million dollar federal lawsuit from the top seven paparazzi agencies in the US.

Splash News, INF, Ramey, Bauer Griffin, WENN, Most Wanted and Flynet have joined forces to stop Perezhilton.com from using copyrighted images.

"Perez claims he is making a fortune off exploiting pictures taken by photographers. He blatantly violates copyright and makes advertising revenue off other people's works," said Gary Morgan of Splash News.

"It is time he is held accountable for his actions. We have amassed a ton of evidence from all of these agencies detailing his infringements. We have filed a letter to him giving him the chance to either pay up for all of his copyright violations or face the music. He only has a few days to decide."