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This paper proposes a high capacity audio watermarking algorithm in the logarithm domain based on the absolute threshold of hearing (ATH) of the human auditory system (HAS) which makes this scheme a novel technique. The key idea is to divide the selected frequency band into short frames and quantize the samples based on the HAS. Apart from remarkable capacity, transparency and robustness, this scheme provides three parameters (frequency band, scale factor, and frame size) which facilitate the regulation of the watermarking properties. The experimental results show that the method has a high capacity (800 to 7000 bits per second), without significant perceptual distortion (ODG is greater than - 1) and provides robustness against common audio signal processing such as added noise, filtering and MPEG compression (MP3).