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In this video, Matthew demonstrates how to create a licensing agreement using legal templates. He provides a link to legaltemplates.net, guiding viewers to the "Business Forms" section, where they can access various forms. He searches for the licensing agreement template and selects Texas to create the document. Matthew discusses key elements to consider, including the owner of the intellectual property, the individual acquiring the license (Mr. Add), and the type of license (exclusive or non-exclusive). He encourages viewers to specify the purpose of the license as needed.