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In this video tutorial, viewers learn how to remove a watermark in Microsoft Word. The presenter explains that watermarks may indicate document status, such as "draft," "confidential," or "sample." To remove a watermark, the common double-click method won't work. Instead, the tutorial demonstrates navigating to the "Design" tab, selecting "Watermark," and then clicking the drop-down arrow to choose "Remove Watermark." Following these steps successfully removes the watermark from the document.