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The client was sued for $70,000 for a copyrighted image on their website, placed by the designer. The client then sued the designer, creating a legal mess. In this video, the speaker shares tips to avoid such situations. It is important to note that the speaker is not a lawyer and not giving legal advice. However, they provide a contract template used for web design projects as a foundation for creating a thorough agreement. Additional details and legalities can be added as needed for protection.