Method of error-resilient illumination compensation for three-dimensional video coding

A method of illumination compensation for three-dimensional or multi-view encoding and decoding. The method incorporates an illumination compensation flag only if the illumination compensation is enabled and the current coding unit is processed by one 2Nx2N prediction unit. The illumination compensation is applied to the current coding unit according to the illumination compensation flag. The illumination compensation flag is incorporated when the current coding unit is coded in Merge mode without checking whether a current reference picture is an inter-view reference picture.