In this paper we present a new approach for the secure and robust copyright protection of digital images. We describe a system for generating digital watermarks and for trading watermarked images. The system is based on a new watermarking technique, which is robust against image transformation techniques such as compression, rotation, translation, scaling and cropping. It uses modulation of the magnitude components in Fourier space to embed a watermark and an accompanying template and, during watermark extraction, reads a template in the log polar transform of the frequency domain. The template is used for analyzing scaling and rotation suffered by the watermarked stego-image. The detection of the watermarks is also possible without any need for the original cover-image. In addition, the system applies asymmetric cryptographic protocols for different purposes, namely embedding/detecting the watermark and transferring watermarked data. The public key technique is applied for the construction of a one-way watermark embedding and the verification function to identify and prove the uniqueness of the watermark. Legal dispute resolution is supported for the multiple watermarking of a digital image without revealing the confidential keying information.