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A client faced a $70,000 lawsuit for a copyrighted image used by their designer on their website. In retaliation, the client sued the designer, resulting in a complicated situation. The video aims to provide guidance to avoid similar issues in the future. The speaker emphasizes that they are not an attorney and do not offer legal advice, recommending that viewers consult with an attorney regarding contracts. They share a contract template used for web design projects, which can be customized to include any necessary details or legalities, providing a solid foundation for protecting one's interests in web design.