Personally I don't like watermarks on images unless they are particularly subtle and buried away. Certainly not the sort that catch your eye in anyway or are plastered over the middle of the image. IMO the example given may have rendered the image unlikely to be used by someone else but that is mainly because it has rendered the image unviewable.
Actually I don't see the point of watermarks as they either destroy the visual appeal of the image so why post it online? Or they are so easy for a determined thief to clone out so why bother adding them?
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