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But what if you're providing a service that's built on top of the YouTube API and provides value in that it helps people find interesting videos for their children to watch?

What might constitute "sufficient value" in that case?

In that case you're not providing "other content not obtained from YouTube" at all, so you're violating the TOS.

Is the curation provided by the totlol users not itself content? I'd argue that it is. That is, placement into category, tagging, rating, and even the boolean fact of its presence on totlol are each nontrivial pieces of information---i.e. content---provided on the page. Which isn't to say, necessarily, that they balance the contribution of the YouTube content, but here we are again: what does "sufficient" mean?

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