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Embedded links are effectively publishing. If an end user could not tell that the content wasn't on the site, it would be part of the site.
Plus you have to consider the commercialization step: If the guy embeds videos and surrounds the content with tons of ads and such, he is then intentionally stealing from others to profit from it. Without the videos (even if he doesn't host them) he would have no traffic and therefore would have no business. He needs stolen or misused content to be able to be profitable.
Good move.
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