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In the technology sector, nondisclosure agreements (NDAs) are a common legal tool organizations use to protect sensitive information exchanged between parties. For instance, a vendor may request a corporate customer to sign an NDA before sharing their technology for potential licensing. Enterprises should approach NDAs with caution, as signing one typically involves agreeing to protect and not disclose sensitive information received from the other party. NDAs often stipulate that the recipient must not use the information without authorization and may include additional security obligations. Hence, careful consideration is essential before entering into such agreements.