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In the technology sector, nondisclosure agreements (NDAs) are prevalent legal tools used to protect sensitive information exchanged between organizations. For instance, a vendor may request a corporate customer to sign an NDA to review their technology for potential licensing. Enterprises considering signing such agreements should carefully assess the implications. An NDA is not risk-free; signing it typically commits the organization to safeguard the sensitive information received, prevent unauthorized disclosures, and restrict its use within the organization without proper authorization. Thus, enterprises must evaluate the terms and risks associated with NDAs before proceeding.
