A system, a method and a computer program product for tracking usage of digital content on user devices. A license to play digital content data is transmitted to a user. An user watermark is generated by the user device using watermarking instructions and usage rights associated with the digital content. The user watermark is separate from the water mark created outside the user device. Further, information is transmitted to a logging site whenever the content data is played by the content player or copied from the content player to an external medium so that usage of the licensed content data can be tracked.