Originally Posted by sojproductions

you shouldn't be watermarking material unless you own the rights or were given permission, no question. Innocent or not it should be a no-brainer, once you watermarked it you acknowledge you have seen it (doesn't matter who actually watermarked it, your company name is on it) so if it is user submitted it could be mis-construde by other webmasters and affiliates.

You have a fantastic fresh looking site and clearly work hard on it, just be careful on these kind of technicalities, it could get you a bad rep before you know it and could be undeserved.