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In this tutorial by Tracker Software, Sean demonstrates how to add watermarks to documents using PDF Exchange Editor. Watermarks can be used to protect documents, indicate ownership, and discourage counterfeiting. They can be added in text or image format. To add a watermark, go to the Organize tab, click on the Watermarks drop-down menu, and then select Add. In the Add Watermark dialog box, you can choose to use an image file or custom text. You can customize the text, font, and alignment options, as well as use macros.