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In the technology sector, nondisclosure agreements (NDAs) are commonly used for legal protection when organizations share sensitive information. For instance, a vendor may request a corporate customer to sign an NDA before reviewing their technology for potential licensing. Companies considering signing an NDA should be cautious, as agreeing to such terms involves accepting responsibility to protect confidential information from unauthorized disclosure and ensuring it is not used without proper authorization. NDAs often include clauses about securing the information, emphasizing the importance of understanding the implications before committing.