A new approach to digital signatures for imaging, which adapts well to multimedia communications in lossy channels is introduced. Rather than attaching the signature's bit-string as a file-header, it is invisibly etched into the image using a new watermarking algorithm. The watermark is "nonfragile," tolerating small distortions but not malicious tampering aimed at modifying the image's content. In particular, the rank-order relationship in local areas throughout the lowest level of the DWT is exploited to encode the watermark. An edge-based message digest is used. The signature is in the form of binary data and the wavelet decomposition coefficients are modified according to this binary sequence. The signature is also embedded and tested within the SPIHT compression algorithm. The information capacity is studied and the experimental results confirm a logarithm relation between the bit rate and the quantization level, which is similar to the Shannon's capacity theorem. Experiments are performed to examine the signature's transparency and robustness.