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In this video, Matthew demonstrates how to create a licensing agreement using legal templates from legaltemplates.net. He guides viewers to navigate to the "business forms" section and find the "license agreement." Matthew specifically selects Texas for the document. He discusses filling in key information, such as the owner of the intellectual property and the licensee, which in this case is "Mr. Add." He emphasizes specifying the actual intellectual property and highlights the importance of choosing between an exclusive or non-exclusive license. Finally, he mentions including the purpose of the license if desired.