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In this tutorial, Matthew demonstrates how to create a licensing agreement using legal templates. He directs viewers to legaltemplates.net, where they can find various business forms. He navigates to the business forms section and searches for the licensing agreement template. After selecting the appropriate agreement and specifying Texas as the jurisdiction, he highlights key inputs required, such as the owner of the intellectual property, the licensee's name (Mr. Add), and the details of the intellectual property. Matthew explains the choice between exclusive and non-exclusive licenses and suggests specifying the purpose of the license if desired.