ginseng,
You can think of Divx encoder/decoder(I think you are talking about chip). Do you think you are the only one? No. Divx standard is controlled by a company. And may be full of big companies in such market - TI, Motorola, AMD, Intel, Nivdia, ATI, Matrox, 3Dlab. How do you believe you can capture enough market share and grow? Talking about technologies, you can say we are smart. But our competitors are also smart. In addition, they have enough marketing,sales,manufacturing resources.
"So you want to know a little bit about DivX™, huh? DivX™ is a lot of things. First and foremost, DivX™ is a patent-pending MPEG-4 digital video technology created by DivXNetworks, Inc. Videos encoded with DivX technology are among the highest quality digital videos available anywhere (and with a relatively small file size to boot)."
http://www.divx.com/about/
I am not to discourge you. Good idea needs to be discussed many times before it becomes a good business opportunity.
Every one want to win. But here is a sentence: 胜兵胜而求战,败兵战而求胜。
At last, I don't think crack/hack/reverse engineering are good approaches. We are to do business not do crimine.