I purchased the HP books and have been looking into the watermarking for my own curiosity and not for any nefarious purposes.
I won't provide any specifics, but I can tell you that watermarking does exist in (at least) the following locations: Copyright page, CSS file, JPEG EXIF data, PNG steganography, and in the filenames/links themselves.
It's quite secure, much more so than I originally thought, and some of the approaches were clever enough to bring a smile to my face.
As I had never peeked into an eBook before, I'm especially pleased with what I've been able to learn about the ePub format as a result.
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