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In this video tutorial, Matthew explains how to create a licensing agreement using legal templates. He directs viewers to legaltemplates.net, where they can access various business forms. He demonstrates how to find the licensing agreement by selecting "business forms" and searching for "license agreement," specifically in Texas. Matthew guides viewers through the process of filling out the agreement, including identifying the owner of the intellectual property, the licensee (Mr. Add), and specifying the type of license (exclusive or non-exclusive). He also suggests detailing the purpose of the agreement if desired. The video provides a straightforward approach to drafting a licensing agreement using online resources.