1. A method of embedding information in a digital image to create a watermarked digital image, comprising: (a) transforming the digital image to a set of coefficient blocks having coefficients in a frequency domain; (b) embedding a watermark-indicator in each of a plurality of coefficient blocks of said set of coefficient blocks; (c) embedding a watermark in each of a plurality of watermark blocks to generate a watermarked digital image, wherein each watermark block in the plurality of watermark blocks has a predetermined number of coefficient blocks from said set of coefficient blocks; and (d) outputting the watermarked digital image, wherein steps (a)-(d) are performed using at least one processor on the basis of instructions stored in at least one memory.