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In this video tutorial, the presenter explains how to remove a watermark in Microsoft Word. They illustrate this process using a document with a "draft" watermark, while mentioning other common watermarks like "confidential" or "urgent." Instead of double-clicking the watermark to remove it, which does not work, the presenter suggests navigating to the "Design" tab, clicking on the watermark drop-down arrow, and selecting "Remove Watermark." This action effectively removes the watermark from the document.