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They were not 'banned'. The United Federation of Planets voluntarily undertook an indefinite moratorium on the development of cloaking technology, notwithstanding the thereby-unlawful activites aboard the U.S.S. Pegasus from the Star Trek: The Next Generation episode "The Pegasus", a condition of the Treaty of Algeron, signed with the Romulans in 2311, following the Tomed Incident. In real life: Gene Roddenberry thought the "good guys" didn't need to go sneaking around.

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