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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, directing viewers to the business forms section. Users can find a variety of forms and specifically look for the licensing agreement template. Matthew demonstrates how to select Texas as the jurisdiction and proceed to create the document. Key details to fill out include the owner of the intellectual property, the licensee (Mr. Add), the specific intellectual property, and the type of license (exclusive or non-exclusive). Viewers are encouraged to specify the purpose of the license if desired.