Systems and method for digitally reproducing a moiré-free color halftone output image having an embedded correlation-based digital watermark are provided using an enhanced halftone screen set consisting of a halftone screen for each of N colorants forming N color separations (where N≧3). The N different uniform rosette halftone screen configurations are generated such that each meets uniform rosette halftone screen conditions. A corresponding three-dimensional threshold array is generated for each halftone screen configuration having a phase shift value as an input. The color input image is halftoned, halftoning each one of the N different color separations using a corresponding halftone screen configuration and three-dimensional threshold array to form a moiré-free color output image having the correlation-based digital watermark embedded therein. A single key can be used to produce a full color image of the output image having the watermark image visible therein.