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In this tutorial, Matthew demonstrates how to create a licensing agreement using legal templates. He directs viewers to legaltemplates.net, specifically focusing on the business forms section. After navigating the site, he looks for the licensing agreement form, selecting Texas for the document creation. He discusses key elements such as identifying the ownership of the intellectual property, the licensee (in this case, Mr. Add), the specific intellectual property, and whether the license granted is exclusive or non-exclusive. Finally, he advises specifying the purpose of the license if desired.