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In the technology sector, nondisclosure agreements (NDAs) are commonly used to maintain legal control over sensitive information exchanged between organizations. A vendor often requires a corporate customer to sign an NDA before reviewing their technology for potential licensing. Enterprises should carefully consider the implications of signing NDAs that favor another party, as these agreements come with risks. By signing an NDA, the organization agrees to protect the sensitive information received from unauthorized disclosure and restricts its use within the organization without proper authority. It is crucial for enterprises to understand the commitments and responsibilities that come with such agreements.
