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In the technology sector, nondisclosure agreements (NDAs) are common legal tools used when organizations share sensitive information. For instance, a vendor might request a corporate customer to sign an NDA before evaluating a technology for potential licensing. Enterprises should carefully consider the implications of signing such agreements, as they are not risk-free. By signing an NDA, the organization commits to safeguarding the sensitive information it receives, ensuring it does not disclose it to unauthorized individuals or use it without proper authority. Additionally, the agreement may impose further obligations to secure the information.
