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In this video tutorial by Erin from TechSmith, viewers learn how to extract text from images, PDFs, screenshots, or scanned documents using Snagit. To copy text from a document, users should switch to the image tab in the capture window and select the "Grab Text" option. After clicking the Capture button and selecting the desired text, Snagit utilizes Optical Character Recognition (OCR) to recognize and capture the text displayed on the screen. Once completed, a box appears with the extracted text available for copying and pasting. If users have a digital image that wasn't captured with the Grab Text feature, they can still take a picture or scan the printed document to create a digital copy for extraction.