Originally Posted by JoeD
The problem I see with watermarking, is when someone has their ebooks stolen without their knowledge.
Someone hacks your amazon account, B&N account or any other store account and downloads a copy of the book with your information in it. Since they used your user/pass you're the one fingered unless the IP used comes from some obscure place like china, but then, maybe you were using a proxy, prove otherwise.
No, because a book can only be downloaded to a Kindle (or whatever) that is registered to your account, and you're going to notice if a device that you know nothing about suddenly appears in your device list.