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Seems pretty obvious, depends on the context I guess. They are making it known what belongs to them.

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Someone is lifting up one leg and ******* on trees, cars, and whatever he wants others to keep away from.. :D

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A surveyor is marking your property boundary

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Setting their boundaries.

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Saying back off, it's mine. <br />
People do this with other people.

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It means that they are staking their claim in something or someone, warning others to back the hell off.

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