In this paper, information-theoretic analysis of spread spectrum watermarking (SSW) is performed. The analysis is focused on deriving channel capacity of SSW system in order to determine the most embedding rate with the highest robustness. Channel capacity is calculated for three cases when the watermark channel introduces no attack, the additive noise attack and the de-synchronization attack. The analyses in this paper are based on the practical aspects and the embedding and detecting strategy of SSW. In each section, first the channel capacity of SSW is calculated and then all the effective parameters on channel capacity are examined.

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