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In this video, Matthew demonstrates how to create a licensing agreement using legal templates. He directs viewers to legaltemplates.net and guides them to navigate to the business forms section to find the necessary documents. After locating the "licensing agreement," he selects Texas to create the document. Matthew explains the steps for filling out the agreement, including identifying the owner of the intellectual property, the licensee, and specifying the type of license (exclusive or non-exclusive). He emphasizes the importance of detailing the intellectual property in question and optionally describing its purpose. The video provides a practical walkthrough for generating a licensing agreement.