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In this video, Matthew guides viewers on creating a licensing agreement using legal templates. He instructs to visit legaltemplates.net, navigate to the business forms section, and scroll to find the licensing agreement. Users should select Texas for the document's jurisdiction. He explains that viewers need to identify the owner of the intellectual property and the individual acquiring the license. Additionally, viewers must specify the type of license (exclusive or non-exclusive) and outline the purpose of the agreement. The video emphasizes filling in necessary details during the document creation process.