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In this video tutorial, Matthew explains how to create a licensing agreement using Legal Templates. He starts by directing viewers to legaltemplates.net and navigating to the business forms section. After selecting the "Licensing Agreement" for Texas, he discusses filling out the necessary information, such as the owner of the intellectual property and the licensee. Matthew emphasizes choosing between exclusive and non-exclusive licenses and encourages viewers to specify the intended use of the intellectual property. The video provides a step-by-step guide on how to properly fill out the agreement to ensure all important details are included.