The widespread usage of digital media has witnessed a tremendous growth in the last decade due to their benefits in efficient storage, ease of manipulation and transmission. The very nature of digital media makes the work of hackers easier since it enables perfect copies with no loss. Digital video watermarking can be a promising solution in digital –rights –management system.[3]Among various standards, H.264/Advanced Video Codec (AVC) is found to be of significant importance regarding reduced bandwidth, better image quality and network friendliness.[7]The H.264/AVC standard impressively improves the coding efficiency with many enhanced features. Recent research and development in H.264/AVC includes the fast implementation of integer discrete cosine transform and variable block size motion compensation.[11]In case of video watermarking, watermark detection requires the knowledge of the secret key associated to the video. This key contains two main information one being the code which allows recovering the original watermark and the other being the parameters related to the compensation process.[12]The capacity of P-frames and temporal masking in compressed video signals to further increase the watermark payload has been observed in [1].A lot of research has been done on invisible watermarks that are designed to exploit perceptual information in watermarking process.[2]