The rapid expansion of the Internet has rapidly increased the availability of digital data such as audio, images and videos to the public and file sharing has become very convenient. As such, the problem of protecting multimedia information, the issues of copyright has gained interest of researchers. Owners are concerned about protecting any illegal duplication of their data or work. Protection of intellectual property is very important because digital multimedia content can be copied and distributed quickly, easily, inexpensively, and with high quality and precision. Watermarking has been accepted as a complementary technology to multimedia encryption, providing some additional level of protection of intellectual property rights. Here we present, an overview of digital watermarking and the range of applications that could benefit from applying digital watermarking technology. We propose a simple algorithm for watermarking of an image where it is implemented through Matlab 7.4. The algorithm enables the basic requirements of watermarking and there is future scope to incorporate additional security and robust natures.