Even with the copyright, when displayed people who are viewing the image wont really notice it, and ignore it entirely. And even if they do look at it, they’re most likely to not know whether or not it’s stolen. Watermarks are ugly and obstructing, so I would just suggest a combination of the two. First take the legal approach and put the copyright in an un-obstructive area that doesn’t clash poorly with the composition. Then Incorporate your website name, or any watermark design you would have come up with, into the actual picture itself. Rather then just some blunt ugly thing slapped on carelessly, you have one whole piece of what we all hope is beautiful artwork. Pixelgirlpresents.com has an excellent supply of artists who do this.