Digital watermarks are utilized to mark sensitive documents as confidential in order to indicate that such documents should not be shared outside of the organization.
Digital watermarks are primarily used to embed information within digital media to protect intellectual property rights by establishing ownership, not necessarily to label documents as confidential. While they could be used to indicate that documents are sensitive, their primary function is to embed an identifier that can be traced back to the owner in the event of unauthorized distribution or copying. Confidential documents are often marked by other means such as headers, footers, or labels.