A 
watermark is a design made by impressing a water coated metal stamp or roll onto 
paper during manufacturing. The result is a pale shadowy image that is clearly visible when the paper is held up to the light. Watermarks originally were used to identify paper manufacturers.  They were introduced into modern 
Europe in 
Italy in 
1282.  They have also been used on 
postage stamps, 
currency and other government documents to prevent 
counterfeiting.  
Encoding an identifying code into digitized music, video, picture, or other file is known as a digital watermark.
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