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In this video, the narrator discusses a situation where a client faced a $70,000 lawsuit for a copyrighted image used by their designer on a website. The client subsequently sued the designer, leading to a complicated legal mess. The presenter emphasizes the importance of taking preventive measures to avoid such situations. While disclaiming any legal expertise, they highlight the need for proper contracts and recommend consulting an attorney for legal advice. Additionally, the video shares a contract template used for web design projects, which serves as a solid foundation that can be customized to meet specific needs and legal requirements.