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In this video tutorial, Sean from Tracker Software demonstrates how to add watermarks to documents using PDF Exchange Editor. Watermarks are useful for protecting documents from unauthorized use and indicating ownership. They can be added as text or images. To add a watermark, go to the Organize tab, click on the Watermarks dropdown menu, and select Add. You can choose to use either an image file or custom text for the watermark. The preview pane will show you how the watermark will appear, and you can customize the font, alignment, and use macros if needed.