From the previous section, you now have an understanding of how to create a custom shape, and then apply it to an image complete with transformations. However, there's another very important factor to consider, and that's the
Shape tool options:
In the technique in the previous section we selected Option #2, the "Path" because we were going to turn it into a shape tool and needed the active paths to do this neatly and cleanly in the current resolution of the file.
However, if you're using it as a watermark only, then you can select #3, with the desired color, and presto, the watermark is ready to go. But here are your options:

#1 Shape Layer: this creates a shape on a separate layer. These are easily moved, resized, aligned, and distributed -- and generally used as if it were a fill layer. Modifiable with the Pen tools.
#2 Paths: this draws the shape as a work path, which can then be used as a selection for a vector mask, or to fill and stroke with color. Remember that a work path is temporary unless you save it. Modifiable with the Pen tools.
#3 Fill Pixels: this simply paints the shape directly on a layer in the form of raster pixels rather than a scalable vector shape. The Pen tools don't work in this mode.
They are all work paths and will go away from the paths palette unless you save them. In the case of a simple #3 Fill Pixel mark, there's no need or reason to save it with the file once it's been committed to pixels.
Load your path
Once you have your watermark in a file, you can click the "Load as Selection" button on the Paths Palette and then use it as you would any other live selection over on your Layers Palette.
If you select #3 Fill Pixels option, then the watermark appears on its own new layer in the color specified by the foreground color chip.
You can drop transparency for a ghosted image
Select any layer style... Bevel, Emboss, etc.

The real beauty of this tool however is it's always in your shapes menu, always ready for the next photo...

No matter what the resolution, color or file size, it drags to the size you like, and then renders nice and smooth just as if you created it from scratch.
Actions: an added benefit is the shape tool works perfectly in actions and batch modifications because its unaware of size or resolution. So you can confidently build it into an action or droplette to automate the process further.
That's it. If you liked this, please pass it along or post links to it from your web site. And, don't forget to visit the Photoshop 911 forums to ask your questions, or lend a helping hand to others in need! If you came to this tutorial via the original forum question, you can click here to return.
Rather than explaining many of the other uses of this technique, as we have in the past, we'll send you to Russell Brown's excellent video tutorial Creating a Watermark Action.
BrandingSM.mov; 22.8 MB (You'll need QuickTime installed.)
Russell also has an ACTION you can download to show you how the whole thing can be automated.
Sample Watermark ACTION. Watermark_Action.atn.zip; 16 KB
Russell is one of the original Photoshop development team gurus -- I hosted him in my "Great Graphics Tips" session at Macworld Expo in 1990 when Adobe was announcing Photoshop for the first time!
You'll love his Tips & Techniques web page.
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from the Editor:
I was delighted that day back in 1989 when Peggy Killburn called to ask if I could handle one more speaker in my "Great Graphics Tips & Tricks" session scheduled for the 1990 Macworld Expo. "Yes" was my response to her request to add Russell Brown to my panel. After all, we loved Adobe's young "Illustrator" program, and were quite anxious to try out their upcoming new product called "Photoshop." After seeing his demo, I was convinced Photoshop would be big. So the next month we added "Photoshop Tips & Tricks" to our regular DTG Magazine uploads to Compuserve, GEnie and AOL. The rest is history.
I only regret that I didn't trademark the name.
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Editor / Publisher: Photoshop Tips & Tricks, DTG Magazine.