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In this video tutorial, Matthew guides viewers on creating a licensing agreement using legal templates. He provides a link to legaltemplates.net and navigates to the "business forms" section, where he recommends finding and selecting the "licensing agreement." Matthew demonstrates the process by choosing Texas as the jurisdiction. He discusses filling out essential details such as the owner of the intellectual property, the licensee (in this case, "Mr. Add"), the specific intellectual property, and the type of license (exclusive or non-exclusive). He encourages viewers to specify the purpose of the license if desired.