A watermarking system uses distinct bit patterns to identify a logic 0, a logic 1, and a marker bit, which demarcates segments of logic bit information. Marker bits, which are printed on both foreground and background areas of an image, outline message blocks. In message extraction, a preprocessing step removes any white boarders, identifies the best defined corner of a message block, crops the image, and rotates the image to place the identified corner at the top-left corner. Message extraction scans the rotated image in window segments of increasing size during multiple cycles. During each cycle, if a bit pattern cannot be identified as a data bit, then the size of the examined bit area is increased and rechecked to see it specifically is a marker bit. If no bit information can be definitively identified, then it is assigned a logic bit value based on a 50% random assignment.