US2006126734 A UPAB: 20060724 NOVELTY - A parameter setter sets parameters of an optimization problem based on the motion estimation and pre-determined set of pictures. A solver solves the optimization problem with the set parameters by convex optimization unit in order to yield optimized picture data that represents an encoded version of residual data. DETAILED DESCRIPTION - INDEPENDENT CLAIMS are also included for the following: (1) video signal encoding method; and (2) decoder. USE - For encoding video signal. ADVANTAGE - An improvement of the trade-off between rate and distortion is achieved.