Watermarking third party videos
 

Right, so I am seeing that we dropped in Google in our main keys and our competition is basically watermarking third party vídeos and then embeding them for other webmasters to use (and sending emails so that they "Use THEIR HD vídeos for free").

They put the watermarks on the videos that do not belong to them (Spankwire, Brazzers, Cumlouder... etc. among many) so I wonder: how is this legal?

If you do not send traffic neither to tube as an affiliate nor to the main site that produces the content, yet you use their content and put your own watermark...

How does it work? How come this does not count as content theft?

They do not edit the vídeo itself, the watermark is on the player of the vídeo.

a lot of affiliate programs allow you to watermark their videos under 5 minutes long, with your url as long as that url is promoting their program or it redirects to their program

Special arrangements maybe. Or maybe it simply is theft.