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Take Bang Bros, for example. Their images are all watermarked with their sites names.
Say I go through the trouble of manually cropping the image and leave their watermark on it. Then, the image gets hotlinked or stolen from my TGP and ends up in some forum. People see the image and they type in the address that they see in the pic, leaving me out of the circle and getting paid jack shit for an image I cropped and hosted.
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