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In this video, Matthew guides viewers through creating a licensing agreement using legal templates. He directs them to the website legaltemplates.net, suggesting they navigate to the "Business Forms" section. After selecting "business forms," he demonstrates how to search for and access the licensing agreement template relevant for Texas. Matthew explains that users must specify the owner of the intellectual property, the licensee (the person acquiring the license), and the type of intellectual property involved. He also notes the choice between granting an exclusive or non-exclusive license, and encourages viewers to clarify the purpose of the license.