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In this tutorial, Matthew demonstrates how to create a licensing agreement using legal templates. He directs viewers to legaltemplates.net, where users can find various business forms. The process involves navigating to the "Business Forms" section, selecting the licensing agreement template, and choosing Texas as the jurisdiction. Matthew discusses filling out essential information, including the owner of the intellectual property and the licensee. Viewers need to specify the type of intellectual property involved and choose between an exclusive or non-exclusive license. Finally, he advises detailing the purpose of the license if desired.