Blame DK
I tried to introduce a smaller, tidier watermark 6 months ago and he shot it down because of some bullshit about 'brand recognition'.. Like we have a brand anybody recognises!
edit: Also, the thing is meant to pick the 'least busy' corner to apply the watermark. In this case, it would've been better at the top but because there's multiple colours and image body etc there, it obviously thought 'bottom right is mostly black, I'll do it there'.
Gotta love when technology fails
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