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x^{2}y^{2}+2xy+1-\left(xy-1\right)^{2}
Use binomial theorem \left(a+b\right)^{2}=a^{2}+2ab+b^{2} to expand \left(xy+1\right)^{2}.
x^{2}y^{2}+2xy+1-\left(x^{2}y^{2}-2xy+1\right)
Use binomial theorem \left(a-b\right)^{2}=a^{2}-2ab+b^{2} to expand \left(xy-1\right)^{2}.
x^{2}y^{2}+2xy+1-x^{2}y^{2}+2xy-1
To find the opposite of x^{2}y^{2}-2xy+1, find the opposite of each term.
2xy+1+2xy-1
Combine x^{2}y^{2} and -x^{2}y^{2} to get 0.
4xy+1-1
Combine 2xy and 2xy to get 4xy.
4xy
Subtract 1 from 1 to get 0.
x^{2}y^{2}+2xy+1-\left(xy-1\right)^{2}
Use binomial theorem \left(a+b\right)^{2}=a^{2}+2ab+b^{2} to expand \left(xy+1\right)^{2}.
x^{2}y^{2}+2xy+1-\left(x^{2}y^{2}-2xy+1\right)
Use binomial theorem \left(a-b\right)^{2}=a^{2}-2ab+b^{2} to expand \left(xy-1\right)^{2}.
x^{2}y^{2}+2xy+1-x^{2}y^{2}+2xy-1
To find the opposite of x^{2}y^{2}-2xy+1, find the opposite of each term.
2xy+1+2xy-1
Combine x^{2}y^{2} and -x^{2}y^{2} to get 0.
4xy+1-1
Combine 2xy and 2xy to get 4xy.
4xy
Subtract 1 from 1 to get 0.