Secret communication and copyright protection are the two important issues of modern communication system. The research done so far shows a variety of techniques to communicate secretly. The technique proposed in this paper is a combination of steganography and watermarking which provides copyright protection to the information being transmitted secretly. The proposed technique is a transform domain based technique with the aid of segmentation and watermarking (TDSSW). It is observed that the proposed technique comes up with good PSNR (Peak Signal to Noise Ratio) and enhanced Security.