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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. After exploring various forms, he highlights the "Licensing Agreement" and focuses on Texas as the jurisdiction for document creation. Matthew discusses filling out the agreement, including identifying the owner of the intellectual property and the licensee, which in this example is "Mr. Add". He advises viewers to specify the intellectual property involved and choose between an exclusive or non-exclusive license. Lastly, he suggests detailing the purpose of the license if desired.