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In this video tutorial, Matthew demonstrates how to create a photo licensing agreement using legal templates. He provides a link to access these templates and emphasizes using the search function to find the specific form. After locating the "photo licensing agreement," viewers choose the applicable state and identify the owner of the photos, which in this case is a client named Mr. Ed. Matthew explains the process includes specifying whether there is more than one client and naming the photos, such as wedding or party images. Lastly, he discusses the type of license to be granted, indicating options such as exclusive and perpetual licenses.