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In this video, the client was sued for $70,000 for using a copyrighted image on his website that was placed by his designer. The client then counter-sued the designer, resulting in a messy situation. The video aims to provide tips on how to avoid such legal issues. The creator emphasizes that they are not an attorney and cannot provide legal advice. They share their contract template for web design projects as a foundation for creating a legally sound agreement. It is recommended to consult with an attorney for specific legal advice and details to add to the contract.