arXiv:2610.04169v1 Announce Type: new Abstract: LLM fingerprinting via watermark distillation embeds a statistical watermark signal into model weights, enabling model owners to identify their models behind black-box APIs. Revisiting a recent protocol, we find that its utility evaluation understates text quality degradation in open-ended generation, favoring overly strong watermark teachers. Weakening the watermark improves text quality but sacrifices detectability.

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