A method and apparatus to protect unencrypted content or data in a storage media from prohibited use or reproduction by encrypting unprotected content before it is transmitted to another device or software application. A compliant device or software application is capable of decrypting the content, detecting any watermark within the content, and accessing or processing the content according to the restrictions associated with the detected watermark. Non-compliant devices or software are prevented from accessing or processing the content since they are unable to decrypt it.