The court also ruled that watching videos that violate copyright laws doesn’t constitute copyright infringement. Flava Works, an adult entertainment company, sued myVidster claiming that the video bookmarking website violated copyright by embedding videos that were owned by Flava. Following this, the Court for the Northern District of Illinois ruled in favour of Flava Works and issued a preliminary injunction on myVidster in July 2011. An appeal was made against this injunction in the Seventh Circuit Court of Appeals.
According to the court ruling, if you are a blogger and decide to embed a video from YouTube that too of an episode from Family Guy ripped from a DVD, you are not in violation of any copyright laws. But, the person who uploaded the video on YouTube will be in violation of the copyright law. The judge wrote in the ruling [PDF].
“…As long as the visitor makes no copy of the copyrighted video that he is watching, he is not violating the copyright owner’s exclusive right … His bypassing Flava’s pay wall by viewing the uploaded copy is equivalent to stealing a copyrighted book from a bookstore and reading it. That is a bad thing to do (in either case) but it is not copyright infringement.”