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In the technology sector, nondisclosure agreements (NDAs) are common legal tools used by organizations to protect sensitive information. Typically, when a vendor approaches a corporate customer about their technology for potential licensing, they request that the customer sign an NDA. Enterprises must carefully consider the implications of signing such agreements, as they often require a commitment to keep the disclosed information confidential and not utilize it without proper authorization. An NDA may also include obligations to secure the sensitive data shared under its terms, highlighting the legal and operational responsibilities that come with entering such agreements.
