Earlier quoted context omitted.
When in the process of removing the watermark do I distribute the work?
You're correct, making a derivative work isn't automatically "illegal". But what can you do with the de-watermarked image?
Re: Watermark segmentation
#21You have a picture of yourself or a friend, with a watermark on it. You remove the watermark. Now the picture looks nicer when you look at it. Why's this difficult?