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Digital watermarking has been proposed as a solution to the problem of copyright protection of multimedia documents in networked environments. There are two important issues that watermarking algorithms need to address. First, watermarking schemes are required to provide trustworthy evidence for protecting rightful ownership. Second, good watermarking schemes should satisfy the requirement of robustness and resist distortions due to common image manipulations (such as filtering, compression, etc.). In this paper, we propose a novel watermarking algorithm based on singular value decomposition (SVD). Analysis and experimental results show that the new watermarking method performs well in both security and robustness.