Dude you are overthinking it. According to you, half the internet would be illegal. Just embed the video and move on, I promise you that no feds will come at your door no matter where you are. And in the worst case scenario if anything happens, you will only get an C&D email asking you to remove the video.
Actually more than half of the internet is illegal (darkweb) I just read an article that the darkweb/deepweb makes up 96% of it.
Yes I might be over thinking it, why wouldn't I? You'd be stupid not to.
"The rabbit hole that is the Internet goes much deeper than most people know. In fact, the World Wide Web as we know it represents just 4% of networked web pages — the remaining 96% of pages make up what many refer to as the "Invisible Internet," "Invisible Web" or "Deep Web." This massive subsection of the Internet is 500 times bigger than the visible Web and is not indexed by search engines like Google."
If embedding was illegal, there wouldn't be an option to do it. It's simply sharing original content, linking to the original source (unless you are embedding already ripped off content). You are perfectly fine to embed video, as long as you have your own original content present as well.
I see this a not so recent thread but maybe someone will browse and answer this. What about sites like Anime streaming sites. Where they are all embedded from free sites not uploaded by the owner and there is a disclamier at the bottom of the site stating that are from the free websites and owner does not own them and is not responsible for them. However the videos are most certainly copywrite. As in the youtuber that uploaded them straight ripped and uploaded. What liability does site owner have. None?
I would love a real answer to this. Not a speculative one. An answer from someone who truly knows what they are talking about.