How did you apply the watermark? If you just changed the watermarking setting in the gallery settings, that applies to new uploads. To update a watermark for existing photos in a gallery, use the Tools button > many photos > more > watermarking tool.
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Read more on watermarking here:
http://www.smugmug.com/help/custom-watermark-protection
I hope this helps,
Sebastian
SmugMug Support Hero
Smugger for life!
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