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In the tech industry, nondisclosure agreements (NDAs) are commonly used legal instruments for protecting sensitive information. Organizations often exchange NDAs when discussing technologies, such as when a vendor approaches a corporate customer for potential licensing. For the enterprise receiving the NDA, it's crucial to carefully evaluate the agreement, as it imposes responsibilities. By signing, the organization agrees to protect the sensitive information divulged, ensuring it is not disclosed to unauthorized parties or used without permission. Overall, NDAs carry inherent risks that require careful consideration before agreeing to the terms.
