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The video discusses a situation where a client was sued for $70,000 due to a copyrighted image used by their designer on a website. This led the client to counter-sue the designer, resulting in a complicated legal mess. The speaker emphasizes the importance of taking precautions to avoid similar issues. They clarify that they are not a lawyer and will not provide legal advice, but instead will offer a contract template they use for web design projects. This template serves as a foundation that can be customized with additional details or legal requirements to help prevent legal problems in the future.