This paper proposes a new watermarking algorithm based on the shuffled singular value decomposition and the visual cryptography for copyright protection of digital images. It generates the ownership and identification shares of the image based on visual cryptography. It decomposes the image into low and high frequency sub-bands. The low frequency sub-band is further divided into blocks of same size after shuffling it and then the singular value decomposition is applied to each randomly selected block. Shares are generated by comparing one of the elements in the first column of the left orthogonal matrix with its corresponding element in the right orthogonal matrix of the singular value decomposition of the block of the low frequency sub-band. The experimental results show that the proposed scheme clearly verifies the copyright of the digital images, and is robust to withstand several image processing attacks. Comparison with the other related visual cryptography-based algorithms reveals that the proposed method gives better performance. The proposed method is especially resilient against the rotation attack.