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In the technology sector, nondisclosure agreements (NDAs) are a common legal tool for protecting sensitive information exchanged between organizations. For example, a vendor may request a corporate customer to sign an NDA before discussing the potential licensing of their technology. Enterprises must carefully consider the implications of signing NDAs that favor another party, as these agreements come with inherent risks. By signing an NDA, an organization commits to safeguarding the sensitive information it receives, ensuring it is not disclosed to unauthorized individuals or used without proper authority. The determination to sign should reflect a careful evaluation of potential consequences.