In this paper we propose an effective watermark scheme for embedding and extracting based on the JPEG2000 Codec process. Our embedding algorithm applies the torus automorphisms (TA) technique to break up and scramble a watermark. The scrambled watermark was embedded into the quantized bitstreams of JPEG2000 before the entropy coding stage. Distortion reduction (DR) was applied to the compressed image to lessen image degradation caused by the embedding process. Our watermark scheme is simple and easy to implement. Furthermore, it is robust to attacks like blurring, edge enhancement, and other image processing manipulations.