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In the tech industry, nondisclosure agreements (NDAs) are commonly used to protect sensitive information exchanged between organizations. When a vendor approaches a corporate customer about licensing technology, it's typical for the vendor to request the signing of an NDA. For the enterprise asked to sign, it's important to carefully consider the implications. Signing an NDA signifies an agreement to protect the sensitive information received, ensuring it is not disclosed to unauthorized parties or used within the organization without proper authority. In essence, while NDAs are standard practice, they carry risks that require thoughtful consideration from the receiving party.