I'm going to toss out something which does not answer the question of copyright infringement, but also does not quite agree with all that has been said previously. The mention of pirating, downloading, or outright stealing from or through YouTube is what generates this post.

YouTube videos can be embedded onto another site, yes. But from YouTube or an embedded YouTube video they cannot be pirated, stolen, or otherwise downloaded. The embedded video always stays directly at YouTube, in YouTube's control and on YouTube's servers. The videos are an ideal way to spread a song rapidly around the world without risking loss of financial gain. The greatly reduced cost for international advertising must certainly be worth a few thousand views by those who have never heard of a songwriter, band, or singer.

From what I have seen, many obscure or heretofore unknown artists would remain that way if it wasn't for "air-play" on YouTube. If an artist has a hit song (or songs), they will be a success with or without YouTube, but why think a presence on YouTube would hinder the artist's success or reduce sales?

Neither YouTube nor I promote copyright infringement. I am merely trying to keep YouTube's role in proper perspective.

GEST Songs of Newfoundland and Labrador