I use photoshop elements & simply add it as a text layer.
I'm well aware that if someone wanted, they could easily re,ove it or crop the photo to take it out, but that's life really! I don't want to start covering the image with copyright labels.
I use Picnik.com (semi-free site) which also comes with the 365 ace membership. Use the text tool to add your name or the sticker tool to add a small image.
although watermarking is a good way of showing who holds the rights to the work like others said it can be removed quite easily, however this said watermarking is not strictly speaking needed. the berne convention assigns automatic copyright of a photographic image to the photographer for a minimum of 25 years after the photo was first first created. for more info on the berne convention.
Consider micro text imprinting/watermarking. It can be done so it doesn't show up unless image enlarged and with many repeats is harder to remove. (Google maps does this, but there's is a bit large IMHO).
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I'm well aware that if someone wanted, they could easily re,ove it or crop the photo to take it out, but that's life really! I don't want to start covering the image with copyright labels.
http://en.wikipedia.org/wiki/Berne_Convention_for_the_Protection_of_Literary_and_Artistic_Works