Dear Rich: An Intellectual Property Blog: Can I Embed YouTube Video at For-Profit Site?
Can you embed YouTube videos in courses that are developed for profit? Probably, as long as the copyright holder has enabled embedding. YouTube's terms of service say you have to add "sufficient value" beyond the video if you make money on it. For e-learning, that shouldn't be hard to prove. It's still safer to ask if you're not sure, but it generally should be OK.