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In the technology sector, nondisclosure agreements (NDAs) are a common legal tool, often exchanged between organizations. For instance, a vendor may ask a corporate customer to sign an NDA before reviewing technology for potential licensing. Enterprises approached to sign NDAs should carefully consider the implications, as these agreements come with risks. By signing an NDA, an organization acknowledges that it will receive sensitive information and agrees to protect it from unauthorized disclosure and refrain from using it without proper authorization. Additionally, NDAs often require organizations to implement security measures for the information received.