Abstract: A for method watermarking a compressed video bitstream selects for modification numerous sites within an MPEG compressed video bitstream, each of which sites includes a DCT coefficient which is apt for modification. Watermarking sites are preferably located in MPEG B frames, and the DCT coefficient to be modified preferably has a run-length of zero (0). The method then embeds the watermark by modifying the DCT coefficient for at least some of the selected sites. A list specifying the watermarking sites may be transmitted together with the compressed video bitstream to permit further watermarking by subsequent bitstream receivers. A system for detecting an unauthorized copy of a watermarked video forms a synchronized, frame-by-frame difference between a possibly unauthorized copy of the watermarked compressed video and an un-watermarked copy of the video. Data in the watermarking site list permits readily locating watermarks within the possibly unauthorized copy.