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In the technology sector, nondisclosure agreements (NDAs) are a common legal tool for organizations when sharing sensitive information. Typically, a vendor may request a corporate customer to sign an NDA to access the vendor's technology for potential licensing. However, enterprises should carefully consider the implications of signing an NDA that favors another party. By signing, the organization agrees to protect sensitive information, ensuring it is not disclosed to unauthorized individuals or used without permission. NDAs usually stipulate the requirement to implement security measures to safeguard the information exchanged.