perezhilton.com? Genius or Criminal?

I am amazed at the success of Perezhilton, but I wonder if he will win his case. He is being sued for 7.5 million by a large photography agency. As a photographer myself, I understand how angry I would be if my photos were stolen, but on the other hand, without interesting photos, it is hard to have a popular blog. Not everybody has the time to be an expert blogger and photographer. Does anybody have any thoughts on the perezhilton situation?