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And that "stolen videos from youtube at GFY" argument, is bullshit too. Youtube has DFP which is free and available at any moment to any copyright holder, and they also respond to DMCAs quickly if you're too lazy to fingerprint your whole library, and at least that specific clip will be added to the DFP database so nobody will be able to upload it again.
They also ban repeat infringer accounts, and they warn users not to upload stolen shit at many occasions, which helps too.
Because of that, when you embed from youtube, you know that copyright holders either want their stuff there, or do not care. Or at least you know that they can quickly take care of that infringment if it struck them only yesterday that maybe there's some of their stolen stuff at posted youtube.
Youtube is the SAFEST place on earth to embed from copyright infringment wise. If somebody will attempt to make GFY liable for youtube videos posted there, they can simply state what is written above and walk free. Youtube policies are enough for safe harbor protection, and any site that embeds from youtube can enjoy safe harbor too because of that.
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