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In this video, Matthew guides viewers through creating a licensing agreement using Legal Templates. He provides a link to legaltemplates.net and instructs users to navigate to the business forms section. After finding various forms, he suggests scrolling to locate the licensing agreement. Matthew demonstrates selecting Texas as the state and initiating the document creation process. He discusses filling out details, including the ownership of the intellectual property, identifying the licensee (in this case, Mr. Add), and specifying the type of license (exclusive or non-exclusive) and its intended purpose.