MegaCorp` is a large corporation facing a crisis where their internal meetings are leaking to the internet, and the CEO demands that they watermark their videos to prevent piracy. Dr. Taeglich, a researcher, creates a solution using Daily's Video Component System (VCS), a video-oriented JavaScript graphics framework based on React. The solution involves creating a custom component that adds a moving watermark with randomized position to the video stream. The watermark is deployed using Daily's API and session assets feature, which allows users to upload their own images or components. The tutorial demonstrates how to build this custom component from scratch and deploy it in a live stream or recording on Daily.