Your definition of IP is very limited. Suppose I took the 1password code, made a modification to save unencrypted account information for me to later sell, and

Your definition of IP is very limited. Suppose I took the 1password code, made a modification to save unencrypted account information for me to later sell, and published it under the name "1password"?---trademarks are a form of IP. Suppose I invent a new way of doing something very valuable. If I keep my invention secret, everybody is happy until I get run over by a bus, at which point that secret is lost. If I do not keep my invention secret, anyone is free to copy it, undercut my prices, and drive me out of business---patents are a form of IP. The one form of IP you seem to be thinking about is copyright. It's somewhat true that it didn't stop writers from writing, but a surprising proportion of the famous ones (and a large chunk of the non-famous ones) died broke. Fortunately, the number of brilliant works that were not created simply because the theoretical creator had to spend all their time acquiring food is not knowable. Further, "the prize is in the execution", but it may not pay to develop the skill for the execution. For example, any "big budget" movie requires what is effectively a tremendous capital investment which would be hard to recoup without copyright. Also, and possibly unrelated, you seem to be making the mistake of assuming "content" is an undifferentiated mass: "why would I [pirate music] when I have access everywhere to a huge catalog for $10 a month from Spotify". Because Spotify doesn't carry the music you want?