Originally Posted by d-null

"legal"?

it's all fun and games until you set up such a site, post a competitor's copyrighted youtube video and display it and get noticed and they realize you have a house or other assets and decide to sue you

leaving it to youtube to "copyright screen" is no excuse

just because youtube hosts a video and has an ability thereon to embed that video, doesn't take away the rights of the copyright holder. because the video is user uploaded, youtube is protected by dmca, but if you embed (publish) that video on your site by your own actions as a site owner, you are responsible for that publishing, how do you expect dmca to apply to you when you are the one displaying the copyrighted material on your site?

just like if someone uploads a stolen video on youtube, youtube is protected because of dmca, but the person that uploaded that video to youtube is not protected at all, and can be sued