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In this video tutorial, Matthew explains how to create a licensing agreement using templates from legaltemplates.net. He guides viewers to navigate the site, starting at the top and selecting "business forms" to explore available options. Matthew shows how to find the licensing agreement and select Texas for document creation. He prompts users to identify the owner of the intellectual property and the individual acquiring the license. Viewers must specify the intellectual property involved and choose between an exclusive or non-exclusive license, with an option to define the purpose of the usage. The video aims to simplify the process of drafting a legal licensing agreement.