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The Collaborative International Dictionary
Douglas Harper's Etymology Dictionary
lossy

"characterized by loss," 1948, a term in electrical engineering, from loss + -y (2).

Wiktionary
lossy

a. 1 (context telecommunications English) of a communication channel, subject to loss of signal strength 2 ''(power systems)'' of an electricity transmission line, subject to various forms of power loss 3 (context of an algorithm for converting or compressing data English) reduce the amount of information in data.

WordNet
lossy

adj. characterized by or causing dissipation of energy [ant: lossless]

Wikipedia