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In this video, Matthew explains how to create a photo licensing agreement using legal templates. He directs viewers to a link provided in the description to access business forms. Matthew suggests using the search function to find the "photo licensing agreement" template easily. He demonstrates selecting a specific state for tax purposes and identifies the client, Mr. Ed, and the creator, Mr. Matt. He also mentions that multiple photos can be included, such as wedding and party images. The types of licenses discussed include exclusive rights and a perpetual license, which lasts until a specified period.