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In this video tutorial, Matthew explains how to create a licensing agreement using the legal templates available on legaltemplates.net. By clicking on business forms and selecting "listen think agreement," users can customize the document for their needs, specifying the owner of the intellectual property, the licensee, the type of intellectual property, and the type of license granted (exclusive or non-exclusive). This step-by-step process simplifies the creation of a licensing agreement for any type of intellectual property.