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In this video, Matthew explains how to create a photo licensing agreement using legal templates. He mentions that viewers should access the templates via a link provided under the video. After clicking on the business forms section next to legal templates, he suggests using the search window to locate the photo licensing agreement. Matthew guides viewers to select a state and specify the owner of the photos, using "Mr. Ed" as an example client. He discusses inputting details about the photos, such as their names and titles, and mentions that multiple types, like wedding or party photos, can be included. He concludes by addressing the type of license to be granted, mentioning an exclusive license with a perpetual purpose.