https://boardroomamerica.com/ensure-compliance-with-the-best-data-room-watermarking-and-audit-trail-feature

Watermarking of data rooms is a feature that makes it difficult to manipulate your documents without getting and subsequently caught. It is beneficial for due diligence and other M&A transactions where sensitive information is shared with several parties.

Some VDR providers provide dynamic watermarking, which shows the name of the viewer, their email address, IP-address along with the date and time of access above the uploaded files when they are viewed, printed or downloaded. Some even let you create a custom watermark, and then set the size and opacity.

It is important to remember that watermarks are not as effective when the file is password-protected or encrypted within FirmRoom. In these scenarios users can still download the original file that is not watermarked.

Use the View As feature to determine whether there is a watermark on the PDF files that you download. This allows you to determine if a watermark is present on the PDF files that are downloaded to your computer.

Certain VDR providers provide functionality to stop screenshots of your documents. This is a great feature because some people insist on being able to print and keep physical copies of the documents that are being shared with them. By taking the proper steps, including preparing an M&A checklist prior to the time, giving access to the files with care, and using data room watermarking effectively, you can help your clients avoid any problems that could occur during the course of a transaction.