Watermarking applies semi-transparent vector text overlays—such as "CONFIDENTIAL", "DRAFT", or "INTERNAL USE ONLY"—diagonally or horizontally across every document page. The watermarking engine constructs an Extended Graphic State (`/ExtGState`) dictionary with specified alpha transparency values (typically 15% to 35% opacity), preventing the watermark from obscuring underlying text or tabular data. Advanced watermarking implementations position text elements either in the foreground as an overlay annotation or beneath content streams as an underlay background layer. Using standard PostScript Type 1 and TrueType font definitions ensures that watermarks render with identical crispness across laser printers, high-DPI monitors, and mobile PDF readers. Legal firms, investment banks, and intellectual property teams utilize watermarks during non-disclosure agreement (NDA) reviews, draft contract negotiations, and sensitive merger disclosures to track provenance and prevent unauthorized dissemination.