Open the image that you want to watermark. You can embed only one digital watermark per image. The Embed Watermark filter won’t work on an image that has been previously watermarked.

If you’re working with a layered image, you should flatten the image before watermarking it; otherwise, the watermark will affect the active layer only.

Note: You can add a digital watermark to an indexed-color image by first converting the image to RGB mode, embedding the watermark, and then converting the image back to Indexed Color mode. However, the results may be inconsistent. To make sure that the watermark was embedded, run the Read Watermark filter.

Choose Filter > Digimarc > Embed Watermark.

If you are using the filter for the first time, click the Personalize button. Get a Digimarc ID by clicking Info to launch your web browser and visit the Digimarc website at www.digimarc.com. Enter your PIN and ID number in the Digimarc ID text box, and click OK.

After you enter a Digimarc ID, the Personalize button becomes a Change button, allowing you to enter a new Digimarc ID.

Enter a copyright year, transaction ID, or image ID for the image.

Select any of the following image attributes:

Restricted Use Limits the use of the image.

Do Not Copy Specifies that the image should not be copied.

Adult Content Labels the image contents as suitable for adults only. (Within Photoshop, this option does not limit access to adult-only images, but future versions of other applications may limit their display.)

For Watermark Durability, drag the slider or enter a value, as described in the next section.

Select Verify to automatically assess the watermark’s durability after it is embedded.

Click OK.

Here's the link:

http://help.adobe.com/en_US/photoshop/cs/using/WSfd1234e1c4b69f30ea53e 41001031ab64-7728a.html

Janelle