A system and method for embedding information into digital media and later detecting the embedded information using a unique spread spectrum modulation technique. In general, the present invention removes interference caused by an original signal from the detection process thereby eliminating a major source of detection error. The interference caused by the original signal is removed by using the encoder knowledge about the original signal and modulating the energy of the embedded mark to compensate for the original signal interference. The present invention also includes a novel redundant bit representation technique causes a resulting average over a large sample to tend to zero, thereby reducing the vulnerability of the present invention to malicious collusion attacks.