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In this tutorial, Nate discusses the importance of trademark and copyright in the print-on-demand business. He emphasizes the need to handle trademark and copyright issues carefully to avoid getting into trouble. Nate explains how to identify risky designs and highlights the significance of taking the design process seriously to prevent potential legal issues. He warns about the possibility of receiving a cease and desist letter if selling a design that infringes on someone else's copyright. It is crucial to be cautious and avoid using copyrighted materials in print-on-demand items to ensure a successful and legally compliant business.