Edpuzzle streams videos from YouTube using their embed APIs, which means that we (you included) are in compliance with copyright laws. Of course, this is provided that the original video isn't infringing on anything, in which case the video could be taken down at any time.
The original video still accumulates YouTube views when it's watched on Edpuzzle, because we don't use the auto-play embed. This means that the user has to click "play" in order to watch the video and it's verified that someone is actually watching it (and it's not just automatically playing). Through YouTube's embed API, ads aren't shown, but pop-up banner ads may still appear in the Edpuzzle video. This is important if the owner of the video is making money from advertisers, to assure their video content and ads are being seen. Again, this is in compliance with YouTube regulations, as long as the owner isn't making money directly off of video content that you don't own.
Our policy is to respond to notifications of alleged copyright infringement according to the Digital Millennium Copyright Act. If users upload videos that violate copyright laws, we'll remove the videos and will be forced to delete the accounts of users who have multiple violations (or even one-time offenders, if deemed appropriate).
Questions? Email our support team at email@example.com.