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In this video, Matthew demonstrates how to create a licensing agreement using legal templates. He guides viewers to visit legaltemplates.net, navigate to the business forms section, and search for a licensing agreement. After selecting the Texas option, he explains how to fill in necessary details, including the owner of the intellectual property, the licensee, and the type of license (exclusive or non-exclusive). He encourages viewers to specify the purpose of the license if desired. The tutorial provides a clear step-by-step approach to help users understand the process of drafting a licensing agreement effectively.