A digital watermark is affixed to an existing image file prior to being copied onto a destination media. In one embodiment, the image file is encrypted using content scrambling system (CSS) encryption. In another embodiment, the image file is also compressed prior to being copied onto the destination digital video media. A unique identification code associated with an intended recipient may be embedded into the digital watermark. In one embodiment, this unique identification code is stored in a database, along with information particular to the intended recipient. In this fashion, the identity of the intended recipient of the destination digital video media may be determined.