The Sarnoff Corporation is about to unveil an innovative product called iTrace. The software, which runs on regular PC's, has a special watermark that allows videos to be traced back to their last legal source, say its creators.

"It's impossible to remove low frequency and still have watchable content," boasts scientist Jeffery Lubin.

The watermarks created by the software allow the bootleg to be traced through the copy/distribution chain all the way back to its original source.

Source