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4\left(x^{2}y^{2}-4x^{2}y^{4}\right)
Factor out 4.
x^{2}y^{2}\left(1-4y^{2}\right)
Consider x^{2}y^{2}-4x^{2}y^{4}. Factor out x^{2}y^{2}.
\left(1-2y\right)\left(1+2y\right)
Consider 1-4y^{2}. Rewrite 1-4y^{2} as 1^{2}-\left(2y\right)^{2}. The difference of squares can be factored using the rule: a^{2}-b^{2}=\left(a-b\right)\left(a+b\right).
\left(-2y+1\right)\left(2y+1\right)
Reorder the terms.
4x^{2}y^{2}\left(-2y+1\right)\left(2y+1\right)
Rewrite the complete factored expression.