A technique to ensure watermarking a highest selected layer for decoding when receiving a scalable coded bitstream having a plurality of bitstream layers. In one technique, the watermark is associated only with the highest layer that is selected from the hierarchically arranged layers and not in any of the lower layers of the hierarchy. In another technique, the watermarks are present in all the layers, but each lower layer watermark is compensated in a next higher layer to remove effects of the presence of the lower layer watermark in the next higher layer.