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In the technology sector, nondisclosure agreements (NDAs) are a common legal tool used when organizations wish to share sensitive information. For instance, if a vendor approaches a corporate customer for potential technology licensing, the vendor often requires the customer to sign an NDA. Enterprises asked to sign such agreements should proceed with caution, as NDAs are not risk-free. By signing, an organization commits to keeping the shared information confidential, ensuring it is not disclosed to unauthorized parties and is not used without proper authority. The agreement may also include clauses regarding information security.
