TextSeal: A Localized LLM Watermark for Provenance & Distillation Protection

Proprietary large language models (LLMs) face risks of intellectual property (IP) violation, as adversaries can replicate an LLM by collecting input-output pairs to train a surrogate model, causing financial setbacks. Watermarks offer a promising defense to verify ownership, but existing methods often struggle with semantic distortion, factual inconsistency, and adversarial attacks. In addition, key-conditioned watermarks for provider-specific detection, especially in cross-provider and multi-user scenarios, remain largely underexplored. To address these challenges, we propose SAFESEAL, a novel key-conditioned watermarking framework that achieves strong detectability with minimal impact on model utility, effectively balancing detectability, utility, and robustness. SAFESEAL preserves named entities while substituting linguistic terms with context-aware synonyms through a key-conditioned Tournament sampling mechanism, maintaining semantic fidelity and factual consistency. For detection, we introduce a key-conditioned contrastive detector that jointly encodes the text and key, enabling provider-specific and robust watermark verification. We derive theoretical bounds on the utility-detectability trade-off and significantly reduce latency through lightweight models, batching, and parallelism. Extensive experiments show that SAFESEAL outperforms baselines in utility, detectability, and robustness, achieving a BERTScore of 0.983, entity similarity of 0.963, a 98.2% detection rate, and the highest human ratings for text quality and content preservation, with latency comparable to the fastest baseline. To promote transparency and community-driven progress, we release the first public watermark leaderboard and an interactive demo.

Watermarking embeds statistical signatures in AI-generated text for detection and attribution. We reveal a fundamental vulnerability: when users access multiple models (today's reality), watermarks trivially fail. Watermarks perturb output distributions away from the original, and in competitive markets, these perturbations are typically independent across providers. We theoretically prove that averaging output probability distributions recovers the unwatermarked distribution with up to a second-order error term. Empirically, simply averaging 3-5 models cancels out these perturbations. We introduce WASH (Watermark Attenuation via Statistical Hybridisation), which solves practical challenges in ensemble generation: vocabulary misalignment and tokenisation differences across heterogeneous models. Experiments across six watermarking schemes and three LLMs show that averaging across 3 models suppresses detection z-scores from 5-300 to below 2 (below the detection threshold of 4) and reduces TPR at 5% FPR to below 50%, while improving quality by 27.5% and running 6 times faster than the best baseline on the long sequence generation. Our results suggest that robust AI-text detection via watermarking requires either accepting this fundamental vulnerability or unprecedented coordination among model providers.

Watermarking LLM-generated text is an important task for tracing its provenance. Existing LLM watermarks preserve provenance under editing, but this same robustness allows an adversary to alter critical content while retaining attribution, a vulnerability known as piggyback spoofing. We introduce an innovative watermark that jointly provides provenance and tamper evidence. It co-embeds a robust signal and a fragile signal into each generated token. The signals share the same mechanism but use independent keys and different seeding windows over normalized text, making one resilient to edits and the other sensitive to reader-visible changes. Multiple rounds of unbiased tournament reweighting preserve the expected generation distribution, while a periodic round-allocation pattern controls the trade-off between the two signals. At detection, their scores form a two-dimensional space supporting three decisions: Intact, Tampered, and No-Watermark. Across two large language models and two prompt datasets, our method demonstrates the highest tamper-detection rate among the evaluated methods while maintaining competitive attribution robustness and perplexity. Ablation studies show that reliable three-state detection requires a well-defined notion of intactness, co-embedding of the two signals, and complementary sensitivity to edits.