I presume the mod means watermarks that include a web address or some other advertisement. I don't think there is a problem with watermarking photos with just a name to prevent theft.
There have been countless cases of providers stealing pictures of other providers. This is bad news not only for the original provider but for any guy that sees the unscrupulous provider. One way to prevent such theft is to use watermarks. To require they not be used here is a ridiculous rule.
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