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In this video, the creator discusses a legal issue faced by a client who was sued for $70,000 due to a copyrighted image used by their designer on a website. To avoid such situations, the creator emphasizes the importance of having clear contracts and states they are not an attorney, so viewers should consult with a legal professional for advice. They introduce a contract template used for web design projects that can be customized with additional details and legalities, aiming to provide a solid foundation for viewers to protect themselves in similar circumstances.