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In this tutorial, Matthew explains how to create a licensing agreement using legal templates. He invites viewers to click the link provided to access legaltemplates.net. Users should navigate to the "Business Forms" section and select "View All Business Forms." After locating the licensing agreement template, users can specify the ownership of the intellectual property and the party acquiring the license, in this case, Mr. Add. The tutorial emphasizes filling in the details for the type of intellectual property and indicating whether an exclusive or non-exclusive license is granted. Additionally, viewers are encouraged to define the purpose of the license if desired.