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In this tutorial, we learn about the importance of adding watermarks to documents for various purposes such as protection and ownership indication. Watermarks can be added in text or image format using PDF Exchange Editor. By clicking on the organize tab and selecting the watermarks drop-down menu, users can easily add watermarks. The add watermark dialog box allows users to choose between image files or custom text for the watermark. Customizable options include changing the font, alignment, and using macros for personalization.