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In this tutorial, Matthew demonstrates how to create a licensing agreement using legal templates. He provides a link to legaltemplates.net and navigates to the "Business Forms" section. After scrolling through various forms, he selects the "Licensing Agreement," choosing Texas as the jurisdiction. Matthew explains the key elements needed for the agreement, such as identifying the owner of the intellectual property and the licensee. He instructs on specifying the intellectual property in question and whether the license granted is exclusive or non-exclusive. Viewers are encouraged to fill in necessary details and tailor the agreement to their needs.