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An important issue for video transmission over IP networks is preservation of perceived video quality despite packet loss. Packet loss can be detrimental to compressed video. However, reducing packet loss to a very low level is difficult with current loss control techniques. Furthermore, even a very low objective loss probability can still seriously distort perceived video quality. This paper proposes a loss control scheme using video characteristics. It increases maximum loss tolerance for a desired level of video quality, providing better quality at equal loss ratios, as compared to a conventional packet discard scheme. Meanwhile, network efficiency is also improved.