During the digital era as more data are being transferred over internet the need for secure communication arises. Hence copy right protection, tamper proof, content authentication, and copy protection to the digital data has to be assured in some ways. Watermarking has entered in the area of bio medical image processing since it is used to hide the information about the patient. To ensure this, various security concepts has been introduced. This paper proposes a grouping of two algorithms to provide copyright protection to the digital data. The proposed method uses an encryption algorithm to encrypt the compressed input image and the resultant encrypted output is watermarked with a frequency domain watermarking algorithm. The output is the watermarked encrypted image. The experimental results produced, show that the visual clarity of the watermarked image is high and the watermarked image is of more secure. The PSNR value and MSE value of the proposed method is satisfactory when compared to the previous method where Rational Dither Modulation techniques combined with RC4, RC5, RC6 for assuring copyright protection.