An embodiment of digital watermarks which contains literary information of interest to a reader of an electronic literary macrame (ELM) or a knowledge transfer tool (KTT). The nature of the watermark changes by the deepening of its role in the ELM/KTT, since the watermark becomes what is termed in cryptographic parlance a "side channel" for conveying narrative-related information to a reader outside the primary communications stream. If a reader removes the digital watermark from the work, the side channel containing narrative-related information is destroyed, and the literary value of the work is thereby diminished.