In this paper, a halftoning-based watermarking method is presented. This method enables high pixel-depth watermark embedding, while maintaining high image quality. This technique is capable of embedding watermarks with pixel depths up to 3 bits without causing prominent degradation to the image quality. To achieve high image quality, the parallel oriented high-efficient direct binary search (DBS) halftoning is selected to be integrated with the proposed orientation modulation (OM) method. The OM method utilizes different halftone texture orientations to carry different watermark data. In the decoder, the least-mean-square-trained filters are applied for feature extraction from watermarked images in the frequency domain, and the naïve Bayes classifier is used to analyze the extracted features and ultimately to decode the watermark data. Experimental results show that the DBS-based OM encoding method maintains a high degree of image quality and realizes the processing efficiency and robustness to be adapted in printing applications.