This is about corrupt ineffective government, not evil mastermind government.
I've spent a fair amount of time around left/right libertarians and anarchists, and it bothers me that they spend so much time debating this. One side will say "The problem is the evil corporations," and the other will say "The problem is that the government has too much power," but the argument is pointless because they are both correct.
For instance, as anyone who's studied the financial crisis knows, there are plenty of people in the SEC who used to work for big wall street firms or got very cushy high paid wall street jobs after they leave the SEC. Thus, the wall street firms were not prosecuted for their possibly illegal practices during the financial crisis.
The government vs the private sector is just a false conflict to divert your attention away from the individual actors with lucrative ties to the entertainment industry in the public and private sector who are driving this.
So, if, say, some media companies lobby some members of Congress to put forth a bill because piracy is inconvenient for them, and the rest of Congress passes the bill because they think it helps enforce what they think are property rights, and the President signs it because it appears to be the solution to a growing problem, and the FBI or whatever (apparently DHS has taken an interest in these cases) makes a vague effort toward enforcing it (it is hard and resource-intensive to enforce thoroughly)... and then a dictatorial-minded president gets elected, and makes a practice of enforcing this law very stringently upon political opponents... then it's the same result as if the whole thing were planned beforehand by a conspiracy of evil masterminds.
(I'll take the opportunity to mention how Al Capone was convicted and put to justice... for income tax evasion. Whatever Congress or the public had in mind when passing the 16th amendment, I'm sure it wasn't this.)
It's simply helpful as a way to predict the potential consequences down the road of a piece of legislation to imagine that the government is composed of evil masterminds. I don't care whether there is such a conspiracy; arguing with that premise misses the point. It's like treating a mass of jiggling particles as an ideal gas for purposes of physical calculations; the argument is that that will--most likely, eventually--happen.
http://www.amazon.com/Three-Felonies-Day-Target-Innocent/dp/...