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The client was sued for $70,000 for a copyrighted image on their website, placed by their designer. The client then sued the designer, resulting in a messy legal situation. This video provides tips on how to prevent such nightmares. The speaker emphasizes they are not a lawyer and not providing legal advice. They share a contract template they use for web design projects, which viewers can customize for their needs. It's crucial to consult with an attorney for legal matters.