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In this video, the speaker discusses a legal issue where a client was sued for $70,000 over a copyrighted image used by their designer during website development. The client then sued the designer, resulting in a complicated situation. To prevent such nightmares, the speaker emphasizes the importance of contracts and clarifies they are not a lawyer or providing legal advice. They offer a contract template designed for web design projects, which viewers can customize by adding specific details or legalities to protect themselves in similar situations.