propose a novel joint data-hiding

and compression scheme for digital images using side match

vector quantization (SMVQ) and image inpainting. The two

functions of data hiding and image compression can be integrated

into one single module seamlessly. On the sender side, except for

the blocks in the leftmost and topmost of the image, each of the

other residual blocks in raster-scanning order can be embedded

with secret data and compressed simultaneously by SMVQ or

image inpainting adaptively according to the current embedding

bit. Vector quantization is also utilized for some complex blocks

to control the visual distortion and error diffusion caused by the

progressive compression. After segmenting the image compressed

codes into a series of sections by the indicator bits, the receiver

can achieve the extraction of secret bits and image decompression

successfully according to the index values in the segmented

sections. Experimental results demonstrate the effectiveness of

the proposed scheme.