Wow! I thought the judge was overreacting. But that's one extremely annoying watermark. I would demand the same, no matter what I do for a living.
Eventually you realize that a) no one cares, your work isn't _that_ unique and valuable and b) if someone wants to use your stuff, they will find a way..
The idea of a giant watermark behind text that can just be scanned and OCR'ed anyways is this kind of silly.