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In this video, Matthew guides viewers on creating a photo licensing agreement using legal forms. He recommends clicking the link provided in the video description and navigating to the business forms section. To find the photo licensing agreement, he suggests using the search feature for efficiency. Once located, viewers can select their state and specify details such as the client's name, Mr. Ed, and if there are multiple clients. Matthew emphasizes the importance of including information about the photos, such as types (e.g., wedding or party). The process proceeds by defining the type of license granted, noting if it is exclusive and specifying its duration.