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In this video tutorial, the process of removing a watermark in Word is explained. It mentions common watermarks like "draft," "confidential," "sample," and others that may be present in a document. After working on the file, users often want to eliminate the watermark. The video clarifies that double-clicking the watermark won't work for removal. Instead, users should go to the "Design" tab, click on the watermark drop-down arrow, and select "Remove Watermark" to successfully eliminate it.