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In this video, the speaker discusses a client's experience of being sued for $70,000 over a copyrighted image used by a designer on a website. The client then sued the designer, creating significant complications. To prevent similar situations, the speaker emphasizes the importance of having proper contracts in place and clarifies that they are not a legal expert, hence advised to consult an attorney for legal advice. They provide a contract template that the speaker uses for their web design projects, which can be customized to include necessary details and legalities, ensuring better protection for all parties involved.