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In this video tutorial, Matthew guides viewers on creating a licensing agreement using legal templates. He directs users to legaltemplates.net, specifically to the business forms section, where they can find numerous templates. After locating the licensing agreement template and selecting Texas, he explains filling out the document. Viewers are prompted to specify the owner of the intellectual property, the licensee (Mr. Add), and to define the type of license (exclusive or non-exclusive). Matthew emphasizes the importance of detailing the intellectual property and its intended use.