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In this paper, we propose a new multicast delivery mechanism for bandwidth-demanding applications in IP networks. Our mechanism, referred to as multiple-destination overlay multicast (MOM), combines the advantages of IP multicast and overlay multicast. We formulate the MOM routing problem as an optimization problem. We then design an algorithm based on Lagrangian relaxation on our formulation and propose a distributed protocol based on the algorithm. For network operators, MOM consumes less network bandwidth than both IP multicast and overlay multicast. For users, MOM uses less interface bandwidth than overlay multicast.