**Exhibit 10.19**

**Summary of Key Terms of Named Executive Officer CompensationArrangements**

Digimarc has a written employment agreement with itsChief Executive Officer, Bruce Davis, that governs the minimum terms of hiscompensation and is filed as an exhibit to Digimarc’s annual report onForm 10-K. The Compensation Committee of Digimarc’s Board of Directorsmay establish compensation for Mr. Davis that exceeds the minimumsestablished by his employment agreement.

Digimarc’s other named executive officers arecompensated pursuant to oral, informal compensation arrangements. TheCompensation Committee determines annually the compensation of each namedexecutive officer. Material elements of Digimarc’s compensation arrangementswith its named executive officers consist of an annual base salary, annual cashbonus and equity compensation awards.

The following table sets forth the base salary andannual bonus target amount for each named executive officer for 2007.

 
| **Name and Principal Positions**                              | ** ** | **2007 Base Salary** | ** ** | **2007 Annual  Bonus  Target  (Percentage  of Base Salary)** | ** ** |
|------------------------------------------------------------------------------|------------|--------------------------------|------------|-----------------------------------------------------------------------------|------------|
| Bruce Davis, Chief  Executive Officer and Chairman of the Board of Directors |       | $                              | 410,000    |                                                                        | $          | 328,000 |   |
| Michael McConnell,  Chief Financial Officer and Treasurer                    |       | $                              | 260,000    |                                                                        | $          | 143,500 |   |
| Robert Eckel, President,  Government Programs                                |       | $                              | 270,000    |                                                                        | $          | 148,500 |   |
| Robert Chamness, Chief  Legal Officer and Secretary                          |       | $                              | 250,000    |                                                                        | $          | 137,500 |   |
| J. Scott Carr,  Executive Vice President                                     |       | $                              | 250,000    |                                                                        | $          | 137,500 |   |
| Reed Stager, Executive Vice President                                        |       | $                              | 250,000    |                                                                        | $          | 137,500 |   |

 

Except as otherwise noted, each named executiveofficer will have the opportunity to earn up to approximately 130% of hisannual bonus target amount specified above.  No bonuses will be paid ifDigimarc does not have positive net income in 2007.  Any bonus opportunitywill be allocated among the named executive officers in proportion to theirannual bonus target amounts.  For each named executive officer, other thanMr. Carr, to the extent the 2007 annual bonus is less than or equal to thetarget bonus amount, 60% of the bonus will be calculated based on Digimarc’snet income for 2007 and 40% will be calculated based on the achievement ofindividual performance goals.  For each named executive officer, otherthan Mr. Carr, any portion of the 2007 annual bonus that is in excess of thetarget bonus amount will be calculated based on Digimarc’s net income for2007.  For Mr. Carr, 82% of his 2007 annual bonus will be calculatedbased on a sales commission plan, and Mr. Carr will have the opportunityto earn in excess of this portion of his annual bonus target amount specifiedabove, limited only by the sales performance of the North American salesorganization.  The remaining 18% of Mr. Carr’s 2007 annual bonus willbe paid based on his achievement of individual performance goals, andMr. Carr will have the opportunity to earn up to approximately 130% ofthis portion of his annual bonus target amount.

 The namedexecutive officers are also eligible to participate in Digimarc’s equitycompensation plans, and generally receive annual awards of options, restrictedstock and/or performance vesting shares under these plans at the discretion ofthe Compensation Committee. Options and restricted stock awards generally vestover a four-year period following the date of grant. Performance vesting sharesgenerally vest or terminate on the achievement of one or more specifiedperformance goals. Specific terms of option grants are governed by a StockOption Award Agreement between Digimarc and each named executive officer.Specific terms of restricted stock awards and performance vesting share awardsare governed by a Restricted Stock Agreement and Performance Vesting ShareAgreement, respectively, between Digimarc and each named executive officer.

 

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