Being a habitual tinkerer I did some mucking about trying to defeat the system :-) I tried format conversions from jpg to gif, jpg to bmp, jpg to tif, and several variations thereof. I went back & forth from 24 to 8 bit color & tried a screen cap... surprisingly in all cases the watermark held it's integrity & was readable by the digimark scanner (which is also included in PS & PSP) In fact the only way I was able to defeat the system was by significantly altering the picture either by editing manually or using a plugin. Now the only codicil to all this is that the watermark is only readable by the provided scanner at 24 bit color & up, so if someone really wanted to grab one of your graphics they could convert it to gif & the watermark would be unreadable. However if you convert it back to jpg (even after saving in gif format!) there it is again :-)