This invention has as its object to provide a digital watermark processing apparatus, which can embed a digital watermark while minimizing quality deterioration of objective contents. The image segmentation step segments objective contents into a plurality of partial contents. The encryption step encrypts designated one of the plurality of partial contents. The digital watermarking step embeds a digital watermark in the encrypted partial contents by a scheme corresponding to the characteristics or the purpose of use of an image. The decryption step decrypts the encrypted partial contents embedded with the digital watermark. The composition step composites the decrypted partial contents embedded with the digital watermark and other partial contents