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In this video, Matthew guides viewers through creating a licensing agreement using legal templates. He directs them to legaltemplates.net, specifically the business forms section, where they can find various forms. The viewers are instructed to search for a licensing agreement and select Texas as their state. Matthew explains the process of filling out the agreement, including specifying the owner of the intellectual property and the licensee, and determining the type of license (exclusive or non-exclusive). He emphasizes the importance of detailing the intellectual property and its intended use.