We review developments in transparent data embedding and watermarking for audio, image, and video. Data-embedding and watermarking algorithms embed text, binary streams, audio, image, or video in a host audio, image, or video signal. The embedded data are perceptually inaudible or invisible to maintain the quality of the source data. The embedded data can add features to the host multimedia signal, e.g., multilingual soundtracks in a movie, or provide copyright protection. We discuss the reliability of data-embedding procedures and their ability to deliver new services such as viewing a movie in a given rated version from a single multicast stream. We also discuss the issues and problems associated with copy and copyright protection and assess the viability of current watermarking algorithms as a means for protecting copyrighted data.