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In this video tutorial, Matthew demonstrates how to create a licensing agreement using legal templates. He provides a link to legaltemplates.net and directs viewers to the "Business Forms" section. After scrolling through numerous options, he selects the "Licensing Agreement" form. He guides viewers to specify the owner of the intellectual property, who is acquiring the license (such as "Mr. Add"), and to detail the type of intellectual property involved. Matthew discusses choosing between exclusive or non-exclusive licenses and emphasizes the importance of specifying the purpose of the license if desired.