Embodiments of the invention provide a digital watermarking system and method for producing watermarked images from a sequence of original images. The system includes a storage unit and a processor to encode watermark data, create a watermark bitmap template of the encoded watermark data, load and scale the original images, composite the watermark bitmap template and the scaled original images to produce the watermarked images, and store the watermarked images. The system can also produce a single watermarked image from a single original image.