1. A method of embedding information in a digital image to create a watermarked digital image, comprising: transforming the digital image to a set of coefficient blocks having coefficients in a frequency domain; embedding a watermark-indicator in each of a plurality of coefficient blocks of said set of coefficient blocks; embedding a watermark in each of a plurality of watermark blocks to generate a watermarked digital image, each watermark block in the plurality of watermark blocks having a predetermined number of coefficient blocks from said set of coefficient blocks and a predetermined number of group-of-blocks, wherein each group-of-blocks has a predetermined number of coefficient blocks from the set of coefficient blocks and wherein embedding the watermark includes dividing the watermark into a plurality of watermark-units, selecting a watermark-unit from the plurality of watermark-units and encoding the selected watermark-unit in a group-of-blocks in each watermark block, the encoding including selecting a watermark coefficient set in a group-of-blocks from said group-of-blocks in each watermark block and modifying coefficients in the watermark coefficient set, the modifying including selecting a watermark contributor coefficient set for the watermark coefficient set, wherein the watermark contributor coefficient set and the watermark coefficient set are located in one group-of-blocks and calculating each coefficient in the watermark coefficient set based on the watermark contributor coefficient set; and outputting the watermarked digital image.