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In this video, the speaker recounts a situation where a client was sued for $70,000 over a copyrighted image that their designer had used on a website. This led to the client suing the designer, resulting in significant complications. To help avoid similar situations, the speaker shares insights on the importance of contracts in web design. They clarify that they are not an attorney and do not provide legal advice but offer their own contract template as a foundational tool. This template can be customized with additional details and legalities, ensuring better protection for web design projects.