Netskope's DLP engine can detect a watermark inserted into documents.  However, Netskope does not modify a customer's documents by inserting watermarks.  It's best for a customer to insert their own watermarks.  Netskope's DLP engine also supports fingerprinting of documents as well.

Netskope can integrate with Microsoft Information Protection (MIP) in order to apply Azure RMS protection templates to sensitive data. If Netskope applies an RMS template that includes labelling then this could be seen as a 'watermarking' of sorts. Note: the application of Azure RMS templates applies to API Data Protection policies for Microsoft Office 365 OneDrive for Business (i.e. Azure RMS templates cannot be applied to files in real-time inline policies).