diff --git a/common/rfb/EncodeManager.cxx b/common/rfb/EncodeManager.cxx
index b6fa6af..1cbd32d 100644
--- a/common/rfb/EncodeManager.cxx
+++ b/common/rfb/EncodeManager.cxx
@@ -423,9 +423,6 @@ void EncodeManager::doUpdate(bool allowLossy, const Region& changed_,
           nRects++;
     }
 
-    if (watermarkData)
-        packWatermark(changed);
-
     conn->writer()->writeFramebufferUpdateStart(nRects);
 
     writeCopyRects(copied, copyDelta);
@@ -443,7 +440,7 @@ void EncodeManager::doUpdate(bool allowLossy, const Region& changed_,
     if (!videoDetected) // In case detection happened between the calls
       writeRects(cursorRegion, renderedCursor);
 
-    if (watermarkData) {
+    if (watermarkData && conn->sendWatermark()) {
       beforeLength = conn->getOutStream(conn->cp.supportsUdp)->length();
 
       const Rect rect(0, 0, pb->width(), pb->height());
diff --git a/common/rfb/SConnection.h b/common/rfb/SConnection.h
index bfecb0d..33b399f 100644
--- a/common/rfb/SConnection.h
+++ b/common/rfb/SConnection.h
@@ -198,6 +198,10 @@ namespace rfb {
         std::vector<unsigned char> data;
     };
 
+    virtual bool sendWatermark() const {
+        return false;
+    }
+
   protected:
     void setState(stateEnum s) { state_ = s; }
 
diff --git a/common/rfb/VNCSConnectionST.h b/common/rfb/VNCSConnectionST.h
index 24d1863..9416b2d 100644
--- a/common/rfb/VNCSConnectionST.h
+++ b/common/rfb/VNCSConnectionST.h
@@ -215,6 +215,10 @@ namespace rfb {
     virtual void sendUnixRelayData(const char name[], const unsigned char *buf,
                                    const unsigned len);
 
+    bool sendWatermark() const {
+        return server->sendWatermark;
+    }
+
   private:
     // SConnection callbacks
 
diff --git a/common/rfb/VNCServerST.cxx b/common/rfb/VNCServerST.cxx
index ffd186a..a84ebc9 100644
--- a/common/rfb/VNCServerST.cxx
+++ b/common/rfb/VNCServerST.cxx
@@ -135,7 +135,7 @@ VNCServerST::VNCServerST(const char* name_, SDesktop* desktop_)
     queryConnectionHandler(0), keyRemapper(&KeyRemapper::defInstance),
     lastConnectionTime(0), disableclients(false),
     frameTimer(this), apimessager(NULL), trackingFrameStats(0),
-    clipboardId(0)
+    clipboardId(0), sendWatermark(false)
 {
   lastUserInputTime = lastDisconnectTime = time(0);
   slog.debug("creating single-threaded server %s", name.buf);
@@ -223,6 +223,9 @@ VNCServerST::VNCServerST(const char* name_, SDesktop* desktop_)
 
   trackingClient[0] = 0;
 
+  if (watermarkData)
+    sendWatermark = true;
+
   if (Server::selfBench)
     SelfBench();
 }
@@ -279,6 +282,9 @@ void VNCServerST::addSocket(network::Socket* sock, bool outgoing)
 
   VNCSConnectionST* client = new VNCSConnectionST(this, sock, outgoing);
   client->init();
+
+  if (watermarkData)
+    sendWatermark = true;
 }
 
 void VNCServerST::removeSocket(network::Socket* sock) {
@@ -975,8 +981,8 @@ void VNCServerST::writeUpdate()
   }
 
   if (watermarkData && Server::DLP_WatermarkText[0] && watermarkTextNeedsUpdate(true)) {
-    // If using a text watermark, we have to mark everything as changed...
-    refreshClients();
+    // The text may have changed
+    sendWatermark = true;
   }
 
   comparer->getUpdateInfo(&ui, pb->getRect());
@@ -1104,6 +1110,8 @@ void VNCServerST::writeUpdate()
     }
   }
 
+  sendWatermark = false; // the client now caches it, only send once
+
   if (trackingFrameStats) {
     if (enctime) {
       const unsigned totalMs = msSince(&start);
diff --git a/common/rfb/VNCServerST.h b/common/rfb/VNCServerST.h
index 2bb61b3..721e028 100644
--- a/common/rfb/VNCServerST.h
+++ b/common/rfb/VNCServerST.h
@@ -290,6 +290,8 @@ namespace rfb {
 
     void checkAPIMessages(network::GetAPIMessager *apimessager,
                           rdr::U8 &trackingFrameStats, char trackingClient[]);
+
+    bool sendWatermark;
   };
 
 };
diff --git a/common/rfb/Watermark.cxx b/common/rfb/Watermark.cxx
index 8e51aa4..acee33c 100644
--- a/common/rfb/Watermark.cxx
+++ b/common/rfb/Watermark.cxx
@@ -279,6 +279,31 @@ bool watermarkInit() {
 	return true;
 }
 
+static void packWatermark() {
+	// Take the expanded 4-bit data, filter it by the changed rects, pack
+	// to shared bytes, and compress with zlib
+
+	uint16_t x, y;
+	uint8_t pix[2], cur = 0;
+	uint8_t *dst = watermarkTmp;
+
+	for (y = 0; y < rh; y++) {
+		for (x = 0; x < rw; x++) {
+			pix[cur] = watermarkUnpacked[y * rw + x];
+			if (cur || (y == rh - 1 && x == rw - 1))
+				*dst++ = pix[0] | (pix[1] << 4);
+
+			cur ^= 1;
+		}
+	}
+
+	uLong destLen = MAXW * MAXH / 2;
+	if (compress2(watermarkData, &destLen, watermarkTmp, rw * rh / 2 + 1, 1) != Z_OK)
+		vlog.error("Zlib compression error");
+
+	watermarkDataLen = destLen;
+}
+
 // update the screen-size rendered watermark whenever the screen is resized
 // or if using text, every frame
 void VNCServerST::updateWatermark() {
@@ -359,48 +384,10 @@ void VNCServerST::updateWatermark() {
 					rw - sx);
 		}
 	}
-}
 
-void packWatermark(const Region &changed) {
-	// Take the expanded 4-bit data, filter it by the changed rects, pack
-	// to shared bytes, and compress with zlib
+	packWatermark();
 
-	uint16_t x, y;
-	uint8_t pix[2], cur = 0;
-	uint8_t *dst = watermarkTmp;
-
-        const Rect &bounding = changed.get_bounding_rect();
-
-	for (y = 0; y < rh; y++) {
-		// Is the entire line outside the changed area?
-		if (bounding.tl.y > y || bounding.br.y < y) {
-			for (x = 0; x < rw; x++) {
-				pix[cur] = 0;
-
-				if (cur || (y == rh - 1 && x == rw - 1))
-					*dst++ = pix[0] | (pix[1] << 4);
-
-				cur ^= 1;
-			}
-		} else {
-			for (x = 0; x < rw; x++) {
-				pix[cur] = 0;
-				if (bounding.contains(Point(x, y)) && changed.contains(x, y))
-					pix[cur] = watermarkUnpacked[y * rw + x];
-
-				if (cur || (y == rh - 1 && x == rw - 1))
-					*dst++ = pix[0] | (pix[1] << 4);
-
-				cur ^= 1;
-			}
-		}
-	}
-
-	uLong destLen = MAXW * MAXH / 2;
-	if (compress2(watermarkData, &destLen, watermarkTmp, rw * rh / 2 + 1, 1) != Z_OK)
-		vlog.error("Zlib compression error");
-
-	watermarkDataLen = destLen;
+	sendWatermark = true;
 }
 
 // Limit changes to once per second
@@ -412,5 +399,5 @@ bool watermarkTextNeedsUpdate(const bool early) {
 	if (early)
 		now = time(NULL);
 
-	return now != lastUpdate;
+	return now != lastUpdate && strchr(Server::DLP_WatermarkText, '%');
 }
diff --git a/common/rfb/Watermark.h b/common/rfb/Watermark.h
index 2d8c077..a695f89 100644
--- a/common/rfb/Watermark.h
+++ b/common/rfb/Watermark.h
@@ -35,7 +35,6 @@ struct watermarkInfo_t {
 extern watermarkInfo_t watermarkInfo;
 
 bool watermarkInit();
-void packWatermark(const rfb::Region &changed); // filter and pack the watermark for sending
 bool watermarkTextNeedsUpdate(const bool early);
 
 extern uint8_t *watermarkData;