diff --git a/MANIFEST.in b/MANIFEST.in
index 4bfa6f178..8c78ad091 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -13,5 +13,6 @@ recursive-include docs *.rst
 recursive-include labelbox *.py
 include labelbox/exporters/pascal_voc_writer/templates/annotation.xml
 recursive-include tests *.json
+recursive-include tests *.lbx
 recursive-include tests *.png
 recursive-include tests *.py
diff --git a/Pipfile b/Pipfile
index 768bd5045..3f9616d3a 100644
--- a/Pipfile
+++ b/Pipfile
@@ -26,6 +26,7 @@ sphinxcontrib-napoleon = "*"
 setuptools = ">=40.2.0"
 wheel = "*"
 sphinx-rtd-theme = "*"
+twine = "*"
 
 [requires]
 python_version = "3.6"
diff --git a/Pipfile.lock b/Pipfile.lock
index fe747615f..f93b4f904 100644
--- a/Pipfile.lock
+++ b/Pipfile.lock
@@ -1,7 +1,7 @@
 {
     "_meta": {
         "hash": {
-            "sha256": "783555ed63d4d1381b0184241d346046c945fdca2072fce46cfe36728daff77b"
+            "sha256": "3e757f363a6d88ddaca0941bdfefacf37da62a9d2fbad8e412bfbe229f201de0"
         },
         "pipfile-spec": 6,
         "requires": {
@@ -53,9 +53,10 @@
         },
         "click-plugins": {
             "hashes": [
-                "sha256:7acc5e7eedd2dfd719714e8d53ae99030b5357aed661d0b06dacd6c2d583d7c5"
+                "sha256:b1ee1ccc9421c73007fe290680d97984eb6eaf5f4512b7620c6aa46031d6cb6b",
+                "sha256:dfed74b5063546a137de99baaaf742b4de4337ad2b3e1df5ec7c8a256adc0847"
             ],
-            "version": "==1.0.3"
+            "version": "==1.0.4"
         },
         "cligj": {
             "hashes": [
@@ -117,7 +118,7 @@
                 "sha256:e3660744cda0d94b90141cdd0db9308b958a372cfeee8d7188fdf5ad9108ea82",
                 "sha256:f2362d0ca3e16c37782c1054d7972b8ad2729169567e3f0f4e5dd3cdf85f188e"
             ],
-            "markers": "python_version != '3.0.*' and python_version != '3.2.*' and python_version != '3.3.*' and python_version != '3.1.*' and python_version >= '2.7'",
+            "markers": "python_version != '3.0.*' and python_version >= '2.7' and python_version != '3.2.*' and python_version != '3.3.*' and python_version != '3.1.*'",
             "version": "==1.15.1"
         },
         "pillow": {
@@ -158,26 +159,27 @@
         },
         "pyparsing": {
             "hashes": [
-                "sha256:0832bcf47acd283788593e7a0f542407bd9550a55a8a8435214a1960e04bcb04",
-                "sha256:fee43f17a9c4087e7ed1605bd6df994c6173c1e977d7ade7b651292fab2bd010"
+                "sha256:905d8090c335314568b5faee0025b1829f27bb974604a5762a6cdef3a7dfc3b7",
+                "sha256:f493ee323be1e94929416b3585eefcc04943115cecbaaa35a8c86d1a2368af19"
             ],
-            "version": "==2.2.0"
+            "markers": "python_version != '3.2.*' and python_version != '3.0.*' and python_version != '3.1.*' and python_version >= '2.6'",
+            "version": "==2.2.1"
         },
         "rasterio": {
             "hashes": [
-                "sha256:2dbed0296f3982b142d1fa66d44248ee862404aaa3dcf95c7f81ff240a70d139",
-                "sha256:31390423afaa651f420711e65470d01f6788238d8056a8689f0a9ce2b259809c",
-                "sha256:77b775028c2c745e047f9950f2c6305d9f827249b1114662714fe8c47a3b5dcd",
-                "sha256:7aaa539785c00f59f8dfe3e73a901215ef6bed67b4f18ff8d3bab588340ff45e",
-                "sha256:949cd9ce0143e3e71171e5833c98713cb2fbda1e64aaf27d9e795ac8225a6319",
-                "sha256:95465b8767f1b40865005423431444747aaf1c4230eb7e45e89bfd9d03a5b89e",
-                "sha256:a0e678479991e357df9a6967d3f93c64ccd1ac4ad41c6637fa9726f5cba91059",
-                "sha256:a6e851e3e0592b9e94c2c5fdb198dcedd8a18c5413ca634d1efeead8f8ea90a6",
-                "sha256:b494a0a16f8ec798192e452e5ea30232fccdc86e01593a88ed0753768501bb9e",
-                "sha256:c41d9445bf65d9261200097061d154fd568378bfe51f8c98ba4bc33bfb76a16f"
+                "sha256:22f84ddd39bd2ea08423030d44205fcc17b784978693a21e06a28e66a2e839a0",
+                "sha256:3397b3f290b668658ce1a98da1827d2761b849a3633f2bc7173d21ee1d2f2a83",
+                "sha256:55510bd2d0fba3f67cb2c1655295085777a6f6fa00c5ed93149c07ec47744427",
+                "sha256:60ed7cd3eec0134fa8d586845fd698eb41451eb9c8f84f50fa0656d76788bb50",
+                "sha256:6e5812855157b4d3bd9cdae92f49b9bbfa88f897850e9b5a3cc2d71a6ed6394e",
+                "sha256:c4b8c4643f8de20b4fd02836b951fada0bb50625423bef8fcbd1ce658d91116c",
+                "sha256:dc522623b62c423de8e640ba5b39ca614a52f25f62d648c9682319e185f2db12",
+                "sha256:ed018f8c64b06cca0e9a89967862f6898be2cf91038fcff7a7ae598b18f194a7",
+                "sha256:f001ea0f081f605cac36201886c4a1550e554a19c29632662317bfe5271c2d53",
+                "sha256:f2b8ff4714e7b7de54c39ce8c10747e66ca374a5b2516e0f2ee8a3f121cfc4e3"
             ],
             "index": "pypi",
-            "version": "==1.0.3.post1"
+            "version": "==1.0.4"
         },
         "requests": {
             "hashes": [
@@ -232,6 +234,7 @@
                 "sha256:0ae01783adeaa6948352fc474605da78d277da545b2315f6d2febe0f065bab02",
                 "sha256:8d56182fc83e1a1893284f69abd35751ce30e8f0a33794c2802e7e5d6547e1f1"
             ],
+            "markers": "python_version != '3.0.*' and python_version >= '2.7' and python_version != '3.2.*' and python_version != '3.3.*' and python_version != '3.1.*'",
             "version": "==1.4.2"
         },
         "urllib3": {
@@ -239,7 +242,7 @@
                 "sha256:a68ac5e15e76e7e5dd2b8f94007233e01effe3e50e8daddf69acfd81cb686baf",
                 "sha256:b5725a0bd4ba422ab0e66e89e030c806576753ea3ee08554382c14e685d117b5"
             ],
-            "markers": "python_version != '3.3.*' and python_version < '4' and python_version != '3.0.*' and python_version != '3.2.*' and python_version >= '2.6' and python_version != '3.1.*'",
+            "markers": "python_version != '3.0.*' and python_version >= '2.6' and python_version != '3.2.*' and python_version != '3.3.*' and python_version < '4' and python_version != '3.1.*'",
             "version": "==1.23"
         }
     },
@@ -263,7 +266,7 @@
                 "sha256:0312ad34fcad8fac3704d441f7b317e50af620823353ec657a53e981f92920c0",
                 "sha256:ec9ae8adaae229e4f8446952d204a3e4b5fdd2d099f9be3aaf556120135fb3ee"
             ],
-            "markers": "python_version != '3.3.*' and python_version >= '2.7' and python_version != '3.2.*' and python_version != '3.0.*' and python_version != '3.1.*'",
+            "markers": "python_version != '3.2.*' and python_version != '3.1.*' and python_version != '3.0.*' and python_version >= '2.7' and python_version != '3.3.*'",
             "version": "==1.2.1"
         },
         "attrs": {
@@ -336,7 +339,7 @@
                 "sha256:e05cb4d9aad6233d67e0541caa7e511fa4047ed7750ec2510d466e806e0255d6",
                 "sha256:f3f501f345f24383c0000395b26b726e46758b71393267aeae0bd36f8b3ade80"
             ],
-            "markers": "python_version != '3.0.*' and python_version != '3.1.*' and python_version != '3.2.*' and python_version < '4' and python_version >= '2.6'",
+            "markers": "python_version != '3.2.*' and python_version < '4' and python_version != '3.1.*' and python_version != '3.0.*' and python_version >= '2.6'",
             "version": "==4.5.1"
         },
         "docutils": {
@@ -368,7 +371,7 @@
                 "sha256:3f349de3eb99145973fefb7dbe38554414e5c30abd0c8e4b970a7c9d09f3a1d8",
                 "sha256:f3832918bc3c66617f92e35f5d70729187676313caa60c187eb0f28b8fe5e3b5"
             ],
-            "markers": "python_version != '3.1.*' and python_version != '3.2.*' and python_version != '3.3.*' and python_version != '3.0.*' and python_version >= '2.7'",
+            "markers": "python_version != '3.2.*' and python_version != '3.1.*' and python_version != '3.0.*' and python_version >= '2.7' and python_version != '3.3.*'",
             "version": "==1.1.0"
         },
         "isort": {
@@ -377,7 +380,7 @@
                 "sha256:b9c40e9750f3d77e6e4d441d8b0266cf555e7cdabdcff33c4fd06366ca761ef8",
                 "sha256:ec9ef8f4a9bc6f71eec99e1806bfa2de401650d996c59330782b89a5555c1497"
             ],
-            "markers": "python_version != '3.0.*' and python_version != '3.1.*' and python_version >= '2.7' and python_version != '3.3.*' and python_version != '3.2.*'",
+            "markers": "python_version != '3.2.*' and python_version != '3.1.*' and python_version != '3.0.*' and python_version >= '2.7' and python_version != '3.3.*'",
             "version": "==4.3.4"
         },
         "jinja2": {
@@ -445,11 +448,18 @@
         },
         "mypy": {
             "hashes": [
-                "sha256:673ea75fb750289b7d1da1331c125dc62fc1c3a8db9129bb372ae7b7d5bf300a",
-                "sha256:c770605a579fdd4a014e9f0a34b6c7a36ce69b08100ff728e96e27445cef3b3c"
+                "sha256:00b95bfdc0d5b9aa53c906e56fb91937743f2121d66684db5f947ec5d75f565d",
+                "sha256:6704586b4c2bf7dfa5e87a422be9ca57db622bab65008245759f3d4baeb219dd"
             ],
             "index": "pypi",
-            "version": "==0.620"
+            "version": "==0.630"
+        },
+        "mypy-extensions": {
+            "hashes": [
+                "sha256:37e0e956f41369209a3d5f34580150bcacfabaa57b33a15c0b25f4b5725e0812",
+                "sha256:b16cabe759f55e3409a7d231ebd2841378fb0c27a5d1994719e340e4f429ac3e"
+            ],
+            "version": "==0.4.1"
         },
         "packaging": {
             "hashes": [
@@ -458,12 +468,19 @@
             ],
             "version": "==17.1"
         },
+        "pkginfo": {
+            "hashes": [
+                "sha256:5878d542a4b3f237e359926384f1dde4e099c9f5525d236b1840cf704fa8d474",
+                "sha256:a39076cb3eb34c333a0dd390b568e9e1e881c7bf2cc0aee12120636816f55aee"
+            ],
+            "version": "==1.4.2"
+        },
         "pluggy": {
             "hashes": [
                 "sha256:6e3836e39f4d36ae72840833db137f7b7d35105079aee6ec4a62d9f80d594dd1",
                 "sha256:95eb8364a4708392bae89035f45341871286a333f749c3141c20573d2b3876e1"
             ],
-            "markers": "python_version != '3.3.*' and python_version >= '2.7' and python_version != '3.2.*' and python_version != '3.0.*' and python_version != '3.1.*'",
+            "markers": "python_version != '3.2.*' and python_version != '3.1.*' and python_version != '3.0.*' and python_version >= '2.7' and python_version != '3.3.*'",
             "version": "==0.7.1"
         },
         "pockets": {
@@ -478,7 +495,7 @@
                 "sha256:06a30435d058473046be836d3fc4f27167fd84c45b99704f2fb5509ef61f9af1",
                 "sha256:50402e9d1c9005d759426988a492e0edaadb7f4e68bcddfea586bc7432d009c6"
             ],
-            "markers": "python_version != '3.3.*' and python_version >= '2.7' and python_version != '3.2.*' and python_version != '3.0.*' and python_version != '3.1.*'",
+            "markers": "python_version != '3.2.*' and python_version != '3.1.*' and python_version != '3.0.*' and python_version >= '2.7' and python_version != '3.3.*'",
             "version": "==1.6.0"
         },
         "pycodestyle": {
@@ -512,10 +529,11 @@
         },
         "pyparsing": {
             "hashes": [
-                "sha256:0832bcf47acd283788593e7a0f542407bd9550a55a8a8435214a1960e04bcb04",
-                "sha256:fee43f17a9c4087e7ed1605bd6df994c6173c1e977d7ade7b651292fab2bd010"
+                "sha256:905d8090c335314568b5faee0025b1829f27bb974604a5762a6cdef3a7dfc3b7",
+                "sha256:f493ee323be1e94929416b3585eefcc04943115cecbaaa35a8c86d1a2368af19"
             ],
-            "version": "==2.2.0"
+            "markers": "python_version != '3.2.*' and python_version != '3.0.*' and python_version != '3.1.*' and python_version >= '2.6'",
+            "version": "==2.2.1"
         },
         "pytest": {
             "hashes": [
@@ -548,6 +566,13 @@
             "index": "pypi",
             "version": "==2.19.1"
         },
+        "requests-toolbelt": {
+            "hashes": [
+                "sha256:42c9c170abc2cacb78b8ab23ac957945c7716249206f90874651971a4acff237",
+                "sha256:f6a531936c6fa4c6cfce1b9c10d5c4f498d16528d2a54a22ca00011205a187b5"
+            ],
+            "version": "==0.8.0"
+        },
         "six": {
             "hashes": [
                 "sha256:70e8a77beed4562e7f14fe23a786b54f6296e34344c23bc42f07b15018ff98e9",
@@ -564,11 +589,11 @@
         },
         "sphinx": {
             "hashes": [
-                "sha256:217a7705adcb573da5bbe1e0f5cab4fa0bd89fd9342c9159121746f593c2d5a4",
-                "sha256:a602513f385f1d5785ff1ca420d9c7eb1a1b63381733b2f0ea8188a391314a86"
+                "sha256:95acd6648902333647a0e0564abdb28a74b0a76d2333148aa35e5ed1f56d3c4b",
+                "sha256:c091dbdd5cc5aac6eb95d591a819fd18bccec90ffb048ec465b165a48b839b45"
             ],
             "index": "pypi",
-            "version": "==1.7.9"
+            "version": "==1.8.0"
         },
         "sphinx-rtd-theme": {
             "hashes": [
@@ -591,16 +616,39 @@
                 "sha256:68ca7ff70785cbe1e7bccc71a48b5b6d965d79ca50629606c7861a21b206d9dd",
                 "sha256:9de47f375baf1ea07cdb3436ff39d7a9c76042c10a769c52353ec46e4e8fc3b9"
             ],
-            "markers": "python_version != '3.1.*' and python_version != '3.2.*' and python_version != '3.3.*' and python_version != '3.0.*' and python_version >= '2.7'",
+            "markers": "python_version != '3.2.*' and python_version != '3.1.*' and python_version != '3.0.*' and python_version >= '2.7' and python_version != '3.3.*'",
             "version": "==1.1.0"
         },
+        "toml": {
+            "hashes": [
+                "sha256:380178cde50a6a79f9d2cf6f42a62a5174febe5eea4126fe4038785f1d888d42",
+                "sha256:a7901919d3e4f92ffba7ff40a9d697e35bbbc8a8049fe8da742f34c83606d957"
+            ],
+            "version": "==0.9.6"
+        },
         "tox": {
             "hashes": [
-                "sha256:37cf240781b662fb790710c6998527e65ca6851eace84d1595ee71f7af4e85f7",
-                "sha256:eb61aa5bcce65325538686f09848f04ef679b5cd9b83cc491272099b28739600"
+                "sha256:433bb93c57edae263150767e672a0d468ab4fefcc1958eb4013e56a670bb851e",
+                "sha256:bfb4e4efb7c61a54bc010a5c00fdbe0973bc4bdf04090bfcd3c93c901006177c"
             ],
             "index": "pypi",
-            "version": "==3.2.1"
+            "version": "==3.3.0"
+        },
+        "tqdm": {
+            "hashes": [
+                "sha256:18f1818ce951aeb9ea162ae1098b43f583f7d057b34d706f66939353d1208889",
+                "sha256:df02c0650160986bac0218bb07952245fc6960d23654648b5d5526ad5a4128c9"
+            ],
+            "markers": "python_version != '3.1.*' and python_version >= '2.6' and python_version != '3.0.*'",
+            "version": "==4.26.0"
+        },
+        "twine": {
+            "hashes": [
+                "sha256:08eb132bbaec40c6d25b358f546ec1dc96ebd2638a86eea68769d9e67fe2b129",
+                "sha256:2fd9a4d9ff0bcacf41fdc40c8cb0cfaef1f1859457c9653fd1b92237cc4e9f25"
+            ],
+            "index": "pypi",
+            "version": "==1.11.0"
         },
         "typed-ast": {
             "hashes": [
@@ -636,7 +684,7 @@
                 "sha256:a68ac5e15e76e7e5dd2b8f94007233e01effe3e50e8daddf69acfd81cb686baf",
                 "sha256:b5725a0bd4ba422ab0e66e89e030c806576753ea3ee08554382c14e685d117b5"
             ],
-            "markers": "python_version != '3.3.*' and python_version < '4' and python_version != '3.0.*' and python_version != '3.2.*' and python_version >= '2.6' and python_version != '3.1.*'",
+            "markers": "python_version != '3.0.*' and python_version >= '2.6' and python_version != '3.2.*' and python_version != '3.3.*' and python_version < '4' and python_version != '3.1.*'",
             "version": "==1.23"
         },
         "virtualenv": {
@@ -644,7 +692,7 @@
                 "sha256:2ce32cd126117ce2c539f0134eb89de91a8413a29baac49cbab3eb50e2026669",
                 "sha256:ca07b4c0b54e14a91af9f34d0919790b016923d157afda5efdde55c96718f752"
             ],
-            "markers": "python_version != '3.2.*' and python_version >= '2.7' and python_version != '3.1.*' and python_version != '3.0.*'",
+            "markers": "python_version != '3.2.*' and python_version != '3.0.*' and python_version != '3.1.*' and python_version >= '2.7'",
             "version": "==16.0.0"
         },
         "wheel": {
diff --git a/labelbox/__init__.py b/labelbox/__init__.py
index 6f28194a6..db6688587 100644
--- a/labelbox/__init__.py
+++ b/labelbox/__init__.py
@@ -1,3 +1,3 @@
 "The Labelbox python package."
 
-__version__ = '0.0.4'
+__version__ = '0.0.5'
diff --git a/labelbox/lbx.py b/labelbox/lbx.py
new file mode 100644
index 000000000..69d3220ff
--- /dev/null
+++ b/labelbox/lbx.py
@@ -0,0 +1,143 @@
+"""Module for interacting with the LBX file format.
+
+LBX File Format - lossless compression for segmented images
+
+HEADERS
+bytes 0-3 -> LBX version
+bytes 4-7 -> pixel width
+bytes 8-11 -> pixel height
+bytes 12-15 -> decompressed bytes
+bytes 16-19 -> # colors
+bytes 20-23 -> # blocks
+
+BODY
+- COLORS -
+- BLOCKS -
+
+COLOR
+byte 0 -> red
+byte 1 -> blue
+byte 2 -> green
+byte 3 -> alpha (always 255)
+
+BLOCK
+bytes 0-1 -> R | G value of pixel (superpixel layer #)
+bytes 2-3 -> # consecutive occurences
+"""
+from io import BytesIO
+import itertools
+import logging
+import struct
+from typing import List
+
+import numpy as np
+from PIL import Image
+
+# NOTE: image-segmentation front-end requires background pixels to be white to
+#       render them transparent
+BACKGROUND_RGBA = np.array([255, 255, 255, 255], dtype=np.uint8)
+BACKGROUND_RGBA.flags.writeable = False
+
+_HEADER_LENGTH = 6 * 4
+
+
+def encode(image_in: Image, colormap: List[np.array]) -> BytesIO:
+    """Converts a RGB `Image` representing a segmentation map into the LBX data format.
+
+    Given a segmentation map representing an image, convert it to the LBX format.
+    Background pixels should be represented using the `BACKGROUND_RGBA` RGBA value.
+
+    Args:
+        image_in: The image to encode.
+        colormap: Ordered list of `np.array`s each of length 3 representing a
+                  RGB color. Do not include `BACKGROUND_RGBA`; it will be automatically
+                  accounted for. Every pixel in `image_in` must match some entry in this
+                  list. The ordering of this list determines which colors map to which
+                  class labels in the project ontology.
+
+    Returns:
+        The LBX encoded bytes.
+    """
+    image = image_in.convert('RGBA')
+    pixel_words = np.array(image).reshape(-1, 4)
+    pixel_words.flags.writeable = False
+
+    colormap = list(map(lambda color: np.append(color, 255).astype(np.uint8), colormap))
+
+    input_byte_len = len(np.array(image).flat)
+    buff = BytesIO(bytes([0] * (len(colormap) * 4 + input_byte_len)))
+
+    offset = _HEADER_LENGTH  # make room for header
+
+    def _color_to_key(color):
+        return hash(color.tostring())
+
+    color_dict = dict()
+    color_dict[_color_to_key(BACKGROUND_RGBA)] = 0  # manually add bg
+    for i, color in enumerate(colormap):
+        color.flags.writeable = False
+        struct.pack_into('<BBBB', buff.getbuffer(), offset, *color)
+        color_dict[_color_to_key(color)] = i+1
+        offset += 4
+
+    count = 0
+    pixel_ints = np.apply_along_axis(_color_to_key, 1, pixel_words)
+    for i, pixel_int in enumerate(pixel_ints):
+        count += 1
+        if i+1 == len(pixel_ints) \
+                or not pixel_int == pixel_ints[i+1] \
+                or count > 65534:
+            try:
+                struct.pack_into('<HH', buff.getbuffer(), offset, color_dict[pixel_int], count)
+                offset += 4
+                count = 0
+            except KeyError as exc:
+                logging.error('Could not find color %s in colormap', pixel_words[i])
+                if np.all(pixel_words[i] == np.array([0, 0, 0, 0])):
+                    logging.error('Did you remember to set background pixels to `BACKGROUND_RGBA`?')
+                raise exc
+
+    # write header
+    struct.pack_into(
+        '<iiiiii', buff.getbuffer(), 0,
+        1, image.width, image.height, input_byte_len,
+        len(colormap), offset - len(colormap)*4 - _HEADER_LENGTH)
+
+    return buff
+
+
+def decode(lbx: BytesIO) -> Image:
+    """Decodes LBX encoded byte data into an image.
+
+    Args:
+        lbx: A byte buffer containing the LBX encoded image data.
+
+    Returns:
+        A RGBA image of the decoded data.
+    """
+    version, width, height, byte_length, num_colors, num_blocks =\
+        struct.unpack('<' + 'i'*int(_HEADER_LENGTH/4), lbx.read(_HEADER_LENGTH))
+    assert version == 1, 'only LBX v1 format is supported'
+
+    colormap = np.array(
+        [BACKGROUND_RGBA] +
+        list(_grouper(struct.unpack('<' + 'B'*4*num_colors, lbx.read(4 * num_colors)), 4)))
+
+    image_data = np.zeros((width * height, 4), dtype='uint8')
+    offset = 0
+    for _ in range(num_blocks):
+        layer, run_length = struct.unpack('<HH', lbx.read(4))
+        image_data[offset:offset + run_length, :] = colormap[layer]
+        offset += run_length
+    assert 4*offset == byte_length, \
+        'number of bytes read does not equal num bytes specified in header'
+
+    reshaped_image = np.reshape(image_data, (height, width, 4))
+    return Image.fromarray(reshaped_image, mode='RGBA')
+
+
+def _grouper(iterable, group_size, fillvalue=None):
+    "Collect data into fixed-length chunks or blocks"
+    # grouper('ABCDEFG', 3, 'x') --> ABC DEF Gxx"
+    args = [iter(iterable)] * group_size
+    return itertools.zip_longest(*args, fillvalue=fillvalue)
diff --git a/labelbox/predictions/__init__.py b/labelbox/predictions.py
similarity index 100%
rename from labelbox/predictions/__init__.py
rename to labelbox/predictions.py
diff --git a/tests/test_lbx.py b/tests/test_lbx.py
new file mode 100644
index 000000000..a797896ea
--- /dev/null
+++ b/tests/test_lbx.py
@@ -0,0 +1,49 @@
+from io import BytesIO
+
+import labelbox.lbx as lbx
+import numpy as np
+from PIL import Image
+import pytest
+import struct
+
+
+@pytest.fixture
+def im_png(datadir):
+    with open(datadir.join('sample.png'), 'rb') as f:
+        image = np.array(Image.open(BytesIO(f.read())))
+
+        # convert black to BG
+        image[np.apply_along_axis(np.all, 2, image[:, :, :3] == [0, 0, 0])] = [255, 255, 255, 255]
+        image = Image.fromarray(image)
+        yield image
+
+
+@pytest.fixture
+def lbx_sample(datadir):
+    with open(datadir.join('sample.lbx'), 'rb') as f:
+        yield f
+
+
+def test_lbx_decode(lbx_sample):
+    im = lbx.decode(lbx_sample)
+    assert im.size == (500, 375)
+
+
+def test_lbx_encode(im_png):
+    colormap = [
+        np.array([0, 0, 128]),
+        np.array([0, 128, 0]),
+    ]
+    lbx_encoded = lbx.encode(im_png, colormap)
+    version, width, height = struct.unpack('<iii', lbx_encoded.read(12))
+    assert version == 1
+    assert width == 500
+    assert height == 375
+
+
+def test_identity(im_png):
+    colormap = [
+        np.array([0, 0, 128]),
+        np.array([0, 128, 0]),
+    ]
+    assert np.all(np.array(lbx.decode(lbx.encode(im_png, colormap))) == np.array(im_png))
diff --git a/tests/test_lbx/sample.lbx b/tests/test_lbx/sample.lbx
new file mode 100644
index 000000000..6d55defa5
Binary files /dev/null and b/tests/test_lbx/sample.lbx differ
diff --git a/tests/test_lbx/sample.png b/tests/test_lbx/sample.png
new file mode 100644
index 000000000..6e213aafe
Binary files /dev/null and b/tests/test_lbx/sample.png differ