This invention relates generally to a method and apparatus, as implemented by a software program on a computer system, for producing digital encoded images. This method and system are capable of combining a source image with a latent image so that the latent image is viewable only through the use of a corresponding decoder. The digital processing allows different latent images to be encoded according to different parameters. Additionally, latent images may be encoded into single component colors of an original visible image, at various angles from each other.