How to add a watermark image as a transparent layer to an existing image in PHP using GD

generate_watermarked_image

function generate_watermarked_image($originalFileContents, $originalWidth, $originalHeight, $paddingFromBottomRight = 0, $watermarkFileLocation = 'logo.png') {
    $watermarkImage = imagecreatefrompng($watermarkFileLocation);
    $watermarkWidth = imagesx($watermarkImage);  
    $watermarkHeight = imagesy($watermarkImage);

    $originalImage = imagecreatefromstring($originalFileContents);

    $destX = $originalWidth - $watermarkWidth - $paddingFromBottomRight;  
    $destY = $originalHeight - $watermarkHeight - $paddingFromBottomRight;

    // creating a cut resource
    $cut = imagecreatetruecolor($watermarkWidth, $watermarkHeight);

    // copying that section of the background to the cut
    imagecopy($cut, $originalImage, 0, 0, $destX, $destY, $watermarkWidth, $watermarkHeight);

    // placing the watermark now
    imagecopy($cut, $watermarkImage, 0, 0, 0, 0, $watermarkWidth, $watermarkHeight);

    // merging both of the images
    imagecopymerge($originalImage, $cut, $destX, $destY, 0, 0, $watermarkWidth, $watermarkHeight, 100);
    
    return $originalImage;
}