Additionally, Hilton has been known to speak out publicly against discriminatory behavior of celebrities and other public figures. He called for the firing of Isaiah Washington from ABC television series Grey's Anatomy for making homophobic remarks and called for his readers to do the same. In early 2007, Hilton was criticized by The Hollywood Gossip blog for ignoring racist and homophobic remarks made by Paris Hilton.
On August 17, 2007, citing exclusive sources, Hilton announced the death of Cuban President Fidel Castro and claimed that he was the first media outlet in the world to break the news. Although Hilton claimed that U.S. officials would be making an announcement within hours, no announcement was made, and no major media outlets verified Castro's death. The Associated Press later determined that rumors were sparked by a meeting of Miami officials who were to discuss the city's plans when Castro dies. Rumors were further fueled by a road closure in the Florida Keys that was due to a police standoff. Castro appeared in an interview on Cuban television on September 21, 2007, "looking frail but sounding lucid", and mocking rumors of his death.
A suit against Hilton for copyright infringement was filed by Zomba Label Group on October 11, 2007, stating that Hilton had illegally posted recordings by Britney Spears on PerezHilton.com. The illegal postings include at least 10 completed songs and unfinished recordings leaked over a period of three months. The suit asks for real and punitive damages in an unspecified amount as well as legal costs. Spears is not a party to the suit. In March 2008, Hilton announced on his blog that he would no longer blog about artists signed to Sony BMG (which owned Zomba at the time). However, when the lawsuit was settled in November of that year, Hilton ended his boycott and resumed regular blogging about Sony BMG artists.
On October 11, 2007, a judge cleared the way for Hilton to be deposed in an ongoing defamation suit brought against him by DJ Samantha Ronson, after a post on PerezHilton.com claimed that she had planted cocaine in friend Lindsay Lohan's car and set Lohan up to be photographed while under the influence of alcohol and drugs. Hilton's report was a repetition of gossip initially posted on CelebrityBabylon.com. The judge was informed in court that the owner of that site has already settled the case with Ronson. On January 23, 2008, Perez Hilton was awarded $85,000 by superior court Judge Elihu Berle in this lawsuit filed by Ronson.
Hilton defends his use of this material by claiming it under the fair use exception to the Copyright Act; that is, according to the Los Angeles Times, the photos are altered "to achieve a satiric or humorous end". On March 9, 2007, a judge ruled that Hilton could continue operating his website while the lawsuit remained before the courts. On April 23, 2007, a consortium of five celebrity photo agencies filed a joint lawsuit in federal district court in California against Hilton, claiming more than $7 million in damages from 25 instances of alleged copyright infringement. Days later, on April 26, 2007, upon arriving in Sydney, Australia to attend the MTV Australia Video Music Awards, Hilton was served with a lawsuit by celebrity photo agency PhotoNews claiming C$4,200 in damages for his alleged unauthorized use of a single copyrighted paparazzi photograph of John Mayer and Jessica Simpson.
In June 2007, Hilton's web hosting service dropped his site upon threats of liability in the cases outlined above. Navarre called this "the first victory, and we put a lot of work into trying to get this to happen." He added, "It's a precedent that's huge. When we were talking to Crucial Paradigm they were saying they were not responsible, dragging their feet. We had to threaten them and show them they were liable. His new host is Blogads, and we are contacting them already."
On June 26, 2007, Hilton posted an open call on his blog to all of X17's photographers, both past and present, to contact him if they have not been adequately compensated for working overtime or pictures submitted in the past. Hilton has not used photos by X17 on his website since the suit. In August 2009, X17's lawsuit against Hilton was settled out of court. The terms of the agreement were not disclosed.
On July 13, 2007, Hilton announced on the TV show The View that he would star in his own reality television show on VH1. The series of six one-hour episodes, titled What Perez Sez, aired its first part on September 11, 2007.
Hilton appeared as a contestant on MTV's Celebrity Rap Superstar, which debuted August 30, 2007. He was eliminated in week six of the contest by judges' vote. On September 29, 2007, he hosted a Best of MADtv episode featuring pop culture parody sketches from previous seasons. He has appeared in music videos such as Simple Plan's "When I'm Gone", The Pussycat Dolls's "Hush Hush", Rihanna's "S&M" and in the video of the Latin music Anahí and Christian Chávez "Libertad". Hilton has also appeared in reality shows such as Victoria Beckham: Coming to America, MTV Cribs, The N's Queen Bees, Kathy Griffin: My Life on the D-List, Tori Spelling THS and Paris Hilton's My New BFF. In addition to reality television, Hilton has guest starred as himself in scripted shows such as Privileged.