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In this video, Matthew demonstrates how to create a photo licensing agreement using legal templates. He provides a link to access these forms and instructs viewers to focus on the top of the screen where business forms can be found. Matthew suggests using the search function to locate the "photo licensing agreement" template more efficiently. After selecting a state and specifying the client—referred to as Mr. Ed—the agreement can be filled out with details about the photos, which may include various types such as wedding or party photos. He also discusses types of licenses, indicating options like exclusive licenses and the duration of the agreement.