Coming in WAY late on this but I have to say I certainly wasnt expecting her "Neighbor" to be a bear, LOL It made me chuckle. I was expecting pics of a little girl twirling through a yard!
About watermarking...I can see WHY people do it. I'm an Ebayer and also an owner of 2 beautiful St. Bernards.
Ebay photo's get stolen all the time and its truly annoying. I once had portraits done of my Saint, Tally, and I posted them on a few Dog Owner Forums that I was a member of.
A year later, there was a woman on ebay Selling Stationary, Postcards, Greeting Cards, Labels etc and GUESS who was on it....MY DOG and HER PORTRAIT! I happened to be looking for Saint Bernard Christmas cards when I came across what was SHOCKING to me. I was FREAKED OUT thinking, MY DOG IS ON EBAY!
I emailed this woman ANGRY of course saying she had no right to be using my portrait for her gain. Apparently (This was her story) she got the "rights" to use the photo from the dogs "owner". I told her thats impossible because I am the dog's owner. She told me to prove it.
I took the Whole Packet of portraits, laid them out on the table and took a picture of it along with the release form.
Once she saw that, it was AMAZNG how fast those auctions ended! She also profusely apologized!
SO, Watermraking on the net is SOMETIMES necessary if the pictures are good enough for someone to use for monetary gain!
Just My .02 from my own personal experience!