The religious faith in free markets you seem to imply is a bit naive. In reality, startups would be crushed by the biggest player sucking up their innovations a

The religious faith in free markets you seem to imply is a bit naive. In reality, startups would be crushed by the biggest player sucking up their innovations and broadcasting it faster and to a larger audience. Let's not forget that patents were originally meant to level the playing field, and that's not a terrible goal (the execution is another matter). Mathematically, your free markets need to be clamped at some boundary conditions if you don't want them to get stuck in a local optimum (e.g., big company swallows all). Patents are one way to do this, in theory at least.