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The Basics of Clipping Paths and Opacity Masks - Illustrator Tutorial
Opacity Masks - Illustrator Tutorial

There are dozens of ways in Adobe Illustrator to combine objects to produce new shapes or effects. But one of the most creative--and probably least known--is the opacity mask. With this technique, you can combine an object with one or more other objects to define transparent areas of the shape. You can even use Opacity Masks to create image effects on live type.
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