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In this video tutorial, Matthew instructs viewers on how to create a licensing agreement using Legal Templates. He provides a link to legaltemplates.net, guiding users to navigate to the "Business Forms" section to locate the necessary forms. After selecting the "Licensing Agreement" and the appropriate state, Texas, he emphasizes filling out details regarding the owner of the intellectual property, the licensee (Mr. Add), and specific information about the intellectual property itself. Matthew also discusses the type of license—exclusive or non-exclusive—and encourages viewers to specify the purpose of the license if desired.