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composite -gravity south -geometry +0+10 stamp.png %1 %2Input looks like that:
Image:

Stamp:

IM runtime is ImageMagick 6.7.1-0 2011-07-06 Q16 (Windows 7) and ImageMagick 6.5.7-8 2010-12-02 Q16 (Ubuntu). Result is the same on both:

How can I apply this watermark to the image?