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In this video tutorial, Matthew explains how to create a licensing agreement using Legal Templates. He provides a link to legaltemplates.net and guides viewers to navigate to the business forms section. After selecting the appropriate forms, he demonstrates how to create a licensing agreement specific to Texas. Matthew discusses key details such as identifying the owner of the intellectual property, the licensee acquiring the licensing rights, and the specifics of the intellectual property involved. He also mentions choosing between an exclusive or non-exclusive license and suggests specifying the purpose of use if desired.