A system and method for efficient recovery of watermarks from compressed video is disclosed, wherein, in one embodiment, cyclic watermark noise blocks are tiled and embedded in a plurality of frames of compressed video, quantized coefficients are computed for a group of compressed video frames on a pixel-by-pixel basis, the scaled coefficients for the group of compressed video frames are summed into an output transform frame, and the entire summed output transform frame is transformed to recover peak values for the group of compressed video frames to recover the watermark. Additionally, zero band normalization and edge filtering are also provided to increase the accuracy and efficiency of recovering watermarks from video frames.