Source: watermark.phps - download
<?php

watermark
('img.png''watermark.png');

function 
watermark($dst_im$src_im$im_save=NULL){
    
$src_im imagecreatefrompng($src_im);//create image from source
    
$dst_im imagecreatefrompng($dst_im);//create image from destination
    
imagecopy($dst_im$src_im0000imagesx($src_im), imagesy($src_im));//merge watermark into image
    
header('Content-type: image/png');//send image header to browser
    
imagepng($dst_im);//send image content to browser
}
?>