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The client was sued for using a copyrighted image on their website, which was placed by their designer. They then sued the designer, resulting in a messy legal situation. This video aims to provide tips on avoiding such nightmares. The speaker emphasizes that they are not a lawyer and are not providing legal advice. They share a contract template used for web design projects, which can be customized to suit individual needs. It is recommended to consult with an attorney for legal advice.