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In this video tutorial, Matthew explains how to create a photo licensing agreement using legal templates. He starts by directing viewers to a link for legal forms and demonstrates how to navigate to the "business forms" section. Matthew recommends using the search function to quickly locate the "photo licensing agreement" template. He discusses inputting details such as the state, the client's name (Mr. Ed), and whether there are multiple clients. Additionally, he mentions specifying the types of photos involved, such as wedding or party photos, and outlines the types of licenses that can be granted, such as an exclusive license with a perpetual duration.