It sounds like you are advocating something like IP mercantilism which is even worse than the original mercantilism considering that IP is not a zero-sum commodity. It should be distributed as widely as possible.
Apple for instance can be copied easily yet iPhone knockoffs don't command comparable prices due to lack of established trust and quality. Rivals compete openly with their own R&D.
Microsoft the behemoth failed to break in the phone market even with heavy supportive measures and willingness to take a loss like they did with xbox.