The biometric watermark system 10 operates according to the method shown in FIG. 2, including the steps of generating biometric data 24 in step 34 using a biometric scanner 22; transmitting the biometric data 24 to a data provider 16 in step 36; and encoding first data with the biometric data 24 in step 38 with an encoder 26 to generate an encoded bitstream 28 having a biometric watermark associat