Traditionally, a watermark was a mark or design placed on paper that was produced by the creation of a variation in the thickness of the paper. Watermarks were only visible only when the paper was held up against light. Watermarks can be used to identify the manufacturer, or the grade, of paper. Today, watermarking has gone digital. Digital watermarks can be added to image or video files, so that the information contained in the file can be identified and copyright protected. Audio files can also be watermarked [source: Britannica].

Here's how to place a watermark on a picture using Word 2003:

  1. Open the Word file that has the picture on which you want to place the watermark.
  2. Click on Format in the toolbar. A dropdown menu will appear.
  3. Select Background from the dropdown menu. A box will open up.
  4. Select Printed Watermark. A dialog box will open up.
  5. Select Text Watermark. A text box will open.
  6. Type the text that you want in the Text box.
  7. Click on the font you'd like in the Font box.
  8. Decide how large you'd like the letters to be. In the Size box, either leave the choice as Auto or click on one of the sizes available.
  9. Decide what color the letters should be. Click on the color of your choice in the Color box.
  10. Decide how dark you want the letters to be. The Semitransparent box will be checked. Leave it as is, or click it if you want a stronger color.
  11. Decide if you want the letters to be horizontal or diagonal, and click that option next to Layout.
  12. Click OK. You just created a text watermark.
  13. Save your file.

Here's how to place a watermark on a picture using Word 2010

  1. Open the document that has the picture that you want to place the watermark on.
  2. Go to the Page Layout tab.
  3. Select Page Background group.
  4. Click on Watermark
  5. Click Custom Watermark
  6. Click Text watermark. A box will open up.
  7. Type the text that you want to use as a watermark in the box.
  8. Click Insert
  9. Save your document [source: Microsoft]. //]]]]> ]]>