Digital watermarking is the process of embedding information into a digital signal such as audio, video, documents or pictures. Watermarks are used in order to protect your audio, video or pictures from unauthorized use by other people. If they copy them, it will have a watermark which is difficult to remove.  Microsoft word is excellent word processing software which allows you to add watermarks to your documents easily.

To add watermarks in Microsoft Word:

1. Open Microsoft Word document and navigate to Page Layout > Watermarks.

2. There you will see different types of watermarks you can apply to your document.

3. Select the one you want to apply to your document. It should look something like this:

You can even add Custom Watermarks to your documents as well like your name, your company logo etc.

4. In order to add Custom Watermarks, follow step 1 and select Custom Watermark option.

5. You will see two options; you can either add a text watermark or a picture watermark.

6. In order to add text watermark, simple select Text Watermark, add the details and click Ok. You can even select the layour i-e whether you want the watermark to appear diagonal or horizontal.

7. It should looks something like this:

8. If you want to add picture watermark, navigate to Page Layout > Watermarks > Custom Watermarks. Select the picture which you want to use as watermark and Click OK. You can even select the opacity by checking the Washout option.

9. It should look something like this:

I used Microsoft Word 2007 for this guide. You can also use Microsoft Word 2010.