In this paper an image authentication technique that embeds a color watermark into a host color image is proposed. Watermarking is used for copyright protection using Distributed multiresolution discrete cosine transform (D-MR-DCT) and singular value decomposition. The core idea of the proposed scheme is to decompose an image into four frequency sub-bands using D-MR-DCT and then singular values of every sub-band are modified with the singular values of the watermark.