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In the technology sector, nondisclosure agreements (NDAs) are a common legal tool for protecting sensitive information. Organizations frequently exchange NDAs when discussing potential technology licensing. For instance, a vendor may request that a corporate customer sign an NDA before sharing details about their technology. Enterprises should carefully consider the implications of signing an NDA that favors another party. By signing, they agree to safeguard the sensitive information received, ensuring it is not disclosed to unauthorized individuals and not used without proper authorization. Consequently, organizations need to approach NDAs with caution, as they carry inherent risks.