Through scuttlebutt at work I hear various discussions about watermarking and its place in the rights management world. So I looked around the web to see what's going on with it.
This post by Ronan Geraghty is interesting. He wrote an add-in for Outlook 2007 that allows you to add a recipient's name as a watermark to a file attached to a rights-managed email message.
I also came across Feng Yuan's discussion about creating watermarks for .xps files with managed code. I think use of the .xps file format is going to grow in general, so new applications for it like this are important.