Abstract: Encoded data is transmitted between synchronized sending and receiving digital systems across a lossy transmission media. The systems include respective encoder and decoder information records. If data packets are lost, the encoder rebuilds the encoder record without the missing packet data. Encoding continues using previous encoder records. In a method, packet data is encoded using encoding information in an encoder information record. A new encoder information record is built. The encoded packet data is transmitted to the receiving system with a header. The receiving system examines the header. The packet is decoded using a decoder information record and the decoder information record is updated. The packet is acknowledged to the sending system to enable the sending system to update encoder information. If the packet is lost, the encoder information is conditioned to rebuild new encoder information without the lost packet data. Thus, encoding history is used even when packets are lost.