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In this video tutorial, Matthew explains how to create a photo licensing agreement using legal templates. He provides a link to access these templates and suggests navigating to the business forms section for a search option. Matthew demonstrates how to find the photo licensing agreement template and select the applicable state and tax options. He mentions using client names, such as Mr. Ed for ownership details, and states there could be multiple clients or photos involved, including options for different event types like weddings or parties. He concludes by discussing the type of license to be granted, like exclusive or perpetual.