Hollywood photo agency X17 is suing snarky gossip blogger Perez Hilton aka Mario Lavandeira, for copyright infringement. The agency claims Perez used their images on his website “without permission from the agency, thereby violating federal law.”

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.”

The self-proclaimed “Gossip Gangsta,” who calls a local L.A. coffee shop his “office,” is currently scheduled to appear on the upcoming “Big in ’06 Awards” on VH1, and on MTV’s New Year’s Eve special.

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Actress Tawny Kitaen has been charged with felony drug possession after sheriff’s deputies said they found cocaine in her San Juan Capistrano apartment. Authorities say deputies responding to a request for a welfare check in May found 15 grams of cocaine in Kitaen’s apartment. Authorities say her two children were home at the time, and Kitaen had given deputies permission for the search. Kitaen was arrested in 2002 on charges she abused then-husband, former Angels pitcher Chuck Finley. She agreed to anger management and conflict resolution counseling in exchange for the dismissal of two misdemeanor counts of spousal abuse. Kitaen is best known for her role opposite Tom Hanks in the 1984 comedy “Bachelor Party” and VH1′s “The Surreal Life.”

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