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In this video, Matthew demonstrates how to create a licensing agreement using Legal Templates. He guides viewers to visit legaltemplates.net, navigate to the business forms section, and search for the licensing agreement template. Matthew selects Texas as the jurisdiction and explains the process of filling out the document. He advises on entering the owner's information and specifying the licensee, as well as detailing the intellectual property. Additionally, he discusses choosing between an exclusive or non-exclusive license and encourages viewers to specify the purpose of the license if desired. The tutorial provides a straightforward approach to drafting a licensing agreement.