I have a client thats posting youtube (or similar) videos on their site.

Our business is registered in Canada, but the server is in the US.

My question: if the videos are considered illegal, who gets penalized for their existance? the site thats showing them, or the site thats hosting them (youtube)?

I don't believe it's possible to host a youtube video. Otherwise it would not be a youtube video.

If youtube is hosting the video and you are simply linking to it.. then there is no problem.

(Unless you know for fact that the video breaks youtube TOS, and you knowingly help copyright violations, etc...)

okay, thank you mrzippy