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In this video tutorial, viewers learn how to remove a watermark in Microsoft Word. The example used features a "draft" watermark, which commonly indicates that a document is still being edited. Other examples of watermarks include "confidential," "sample," "urgent," and "do not copy." Instead of double-clicking the watermark, which does not make it editable, the tutorial reveals that users should navigate to the "Design" tab, click on the watermark drop-down menu, and select "Remove Watermark" to successfully eliminate it from the document.