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In this video, Matthew demonstrates how to create a licensing agreement using legal templates. He directs viewers to legaltemplates.net, specifically the business forms section, to find the necessary documentation. After navigating to the relevant agreement for Texas, users are guided to describe ownership of the intellectual property and specify the licensee, which in this case is Mr. Add. Matthew emphasizes filling in the details about the intellectual property and choosing between an exclusive or non-exclusive license. He also suggests detailing the purpose of the use when possible. The video aims to streamline the process of drafting a licensing agreement.