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In the technology sector, nondisclosure agreements (NDAs) serve as a common legal safeguard when organizations exchange sensitive information. Vendors often require corporate customers to sign NDAs before discussing potential technology licensing. However, enterprises should carefully consider the implications of signing an NDA that favors the other party. An NDA typically obligates the signing organization to protect sensitive information, ensuring it is not disclosed to unauthorized individuals and is not misused within the organization. Additionally, an NDA may impose further security and confidentiality obligations. As such, careful analysis is vital before entering into such agreements.