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In this video, Matthew explains how to create a photo licensing agreement using legal templates. He directs viewers to click on the link provided in the video description to access the necessary forms. By navigating to the business forms section, he suggests using the search function to easily find the "photo licensing agreement." Matthew walks through selecting the applicable state and identifying the client, Mr. Ed, as the photo owner. He discusses whether there is more than one client and the types of photos involved, such as wedding or party images. Finally, he explains choosing the type of license to be granted, including options for exclusivity and duration.