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In this video tutorial, viewers learn how to remove a watermark in Microsoft Word. The example provided shows a document with a "Draft" watermark, which is commonly used to indicate that the file is not final. Other typical watermarks include "Confidential," "Sample," and "Urgent." To remove the watermark, the video advises against double-clicking on it, as this will not work. Instead, users should go to the "Design" tab, click on the "Watermark" drop-down arrow, and select "Remove Watermark" to eliminate it from the document.