There is an increased risk of copyright violation of multimedia data due to the enormous growth of computer networks that provides fast and error free transmission of any multimedia information. A copyright identifier that may contain some information about the lawful owner is inserted in the contents of the image, without sacrificing its quality. The security levels are increased by using a key value and scaling factor for the embedding and extraction process. The dual scrambled watermark using Arnold and Scrambling sequence is embedded by modifying the singular values of the scrambled cover image's DWT middle frequency sub-band. The simulation was performed on MATLAB 7.7.0 with standard database gray scale images of size 512x512 and watermark of size 64x64 using hybrid dual scrambled watermark schemes. The performance analysis is done on the basis of the degree of scrambling and JPEG compression attack using various parameters. The proposed method achieves better imperceptibility and security for the copyright protection methods.