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In the technology sector, nondisclosure agreements (NDAs) are a common legal tool used between organizations. Vendors often require corporate customers to sign an NDA before reviewing their technology for potential licensing. Enterprises should carefully consider the implications of signing such agreements, as they are not risk-free. By signing an NDA, the organization agrees to protect sensitive information from unauthorized disclosure and limits its use within the organization without proper authority. NDAs may also include specific security obligations to safeguard the information. It's crucial for organizations to understand their responsibilities and potential liabilities before entering into these agreements.
