Add watermark to images and Protect your images online – Watermarking Lite
Adding watermark is definitely something you should do when you upload images on the web, since many people may try and gain ownership of the image without your knowledge, using a web service to watermark images could get tedious at times when you have lots of images to be watermarked, since you have to upload each and every image and then download the watermarked copy to your desktop.

Watermarking Lite is a freeware desktop software that will allow you to add watermarks or copyrights to your images by providing a wizard that can watermark bulk images in a single job.
It supports watermarking JPG, GIF, PNG and TIF formats and also integrates into the right click context menu, so that you can watermark images without having to open them.
Watermarking Lite allows you to choose between 9 different positions for adding the watermark on the image.
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Dear All,
I have found a web application that can be used
to watermark images. Its one of the best one online with
lot of features.
http://watermark-images.com
Cheers,
Prasad.
@pessi: Thanks for informing, will check it out