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In this video tutorial, Matthew demonstrates how to create a licensing agreement using templates from legaltemplates.net. He navigates to the website, selects "Business Forms," and clicks on "View All Business Forms." After locating the licensing agreement template, he identifies that it is important to fill in details about the ownership of the intellectual property, the licensee (in this case, Mr. Add), and the type of license (either exclusive or non-exclusive). Additionally, he suggests specifying the purpose of the license if desired. The video serves as a guide for users to efficiently create their own licensing agreements.