| CPC H04N 19/44 (2014.11) [H04N 19/14 (2014.11); H04N 19/176 (2014.11); H04N 19/186 (2014.11)] | 20 Claims |

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1. A method for decoding an encoded block from a bitstream, the method comprising:
reading, from the bitstream, a first value indicating a palette mode coding bit depth used to encode the encoded block;
reading, from the bitstream, a second value indicating whether to apply a bit offset to the palette mode coding bit depth;
generating a palette mode prediction block for the encoded block using a set of palette colors determined based on the first value and the second value, wherein, when the second value indicates to apply the bit offset, the set of palette colors is limited based on a maximum palette mode coding bit depth;
generating a reconstructed block using the palette mode prediction block; and
outputting the reconstructed block for storage or display.
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