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In this video, Matthew demonstrates how to create a licensing agreement using Legal Templates. He guides viewers to visit legaltemplates.net, navigate to the business forms section, and find the licensing agreement template. After selecting Texas for the agreement jurisdiction, he explains how to specify the owner of the intellectual property and the licensee. Matthew emphasizes filling in details such as the type of license (exclusive or non-exclusive) and the purpose of the license. Viewers are encouraged to utilize the provided link for accessing the necessary forms.