Blog oligarch Nick Denton has made a lot of money converting other people's content into his own ad revenue. But that simple formula is now threatening to land him in a heap of legal trouble thanks to overzealous use of copyrighted video.

CNET News.com reports that a number of media companies, including ABC, NBC, Fox, Viacom, and Apple are contemplating taking action against Denton's Gawker Media over its flagrant appropriation of video clips. According to the report, a Gawker employee using the handle belowtheradar has posted some 60 clips to YouTube, many of which subsequently appeared on Gawker-owned sites. Particularly galling to the copyright holders is the context in which the clips appeared: bookended by ads for Gawker brands, such as Valleywag and Gizmodo.

Even without the added insult, the practice violates YouTube's guidelines, which require permission from the copyright holder to post a clip. While most of the media companies affected are evaluating their options, a Fox spokeswoman said the company has "plans to pursue this matter further."

Asked about the article, Denton directed Radar to a post on his personal blog disparaging it. "These establishment reporters," he writes. "So sloppy. So sensationalist."