Copyright protection of multispectral images and its integrity become one of the key problems in spatial information service due to rapid development of communication network. This paper depicts a crypto-watermarking scheme by combining watermarking and encryption to protect copyright of multispectral images and to provide security to the watermarked image at dissemination level. We have proposed wavelet-based watermarking and multiplicative-transposition-based cipher for encryption. Experimental results show that the proposed algorithm has not only good robustness against encryption attacks, but also has transparency, strongness, large data hiding capacity, correct extraction of watermark, and strong robustness against JPEG lossy compression, filtering, and noise. Moreover, the classification of original and watermarked data is performed and it is observed that the proposed watermarking scheme leads to less misclassification and it meets all the requirements for copyright protection as well as the security of multispectral images in an effective manner.