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In the technology sector, nondisclosure agreements (NDAs) are commonly used for legal protection when organizations share sensitive information. Typically, a vendor may request a corporate customer to sign an NDA before allowing access to their technology for potential licensing. Enterprises should carefully consider the implications of signing an NDA that favors another party, as it imposes responsibilities to protect confidential information from unauthorized disclosure and restricts its use without proper authorization. An NDA often includes stipulations for securing the sensitive information provided. Thus, organizations must evaluate the risks and terms before consenting to such agreements.
