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In this video, Matthew demonstrates how to create a licensing agreement using legal templates. He begins by directing viewers to legaltemplates.net, where they can access business forms. After navigating to the business forms section, he highlights the "licensing agreement," specifically for Texas. Matthew discusses identifying the owner of the intellectual property and the party acquiring the license, suggesting to specify if there are multiple owners or not. He emphasizes filling in the details of the intellectual property and deciding between an exclusive or non-exclusive license, while also recommending to define the purpose if desired.