I'm working on a Youtube proxy right now but am concerned about trademark issues. I live in the U.S. and am pretty sure Youtube is trademarked. The site name and domain will have the word "Youtube" in it and I plan on using Youtube colors for the layout. What can Youtube do against me if they don't like my website? Do you think not using Youtube colors in design would lessen the chances of me getting on their bad side?
They'll probably ask you to transfer the domain to them and you'll have to do that. No. Domain name and the fact that your site has something to do with YouTube.com is more than enough.