Users who have the permission to download watermarked images according to their permission profile will have an extra option during sharing to offer "Download watermarked assets”. This can be decided per individual share, similar to the read only functionality.
A user with the permission to “Download media with watermark” will be able to dictate, per individual share, if they would like the external party with whom they are sharing to have the ability to view and download the assets. When access is given to download media with a watermark, the shared assets don't carry a watermark after the files have been downloaded.
If a user does not have the permission to “Download media with watermark” they will still be required to request approval for download on watermarked assets and will not have the option to share watermarked assets for download.