Almost my entire career was spent on such custom software. The rest was internal software. And even that one I was doing as a contractor, so in a way we could argue it was custom software even there.
But there is far, far more in the world that just SaaS or internal only software. Sure, companies are generally shifting towards SaaS (in part because it allows them another way to combat piracy, but also to extract recurring revenue rather than one off purchases), but there's still plenty of software you can go out to the shop and buy. Most of that wouldn't exist without copyright laws, because those developers would have found some other way of making a living instead.
Not necessarily? Any infra software is invisible to the end consumer. It's bundled into the price the customer pays for what they see, but they themselves don't know or care about the former.
> there's still plenty of software you can go out to the shop and buy
... is there? I haven't bought software in a shop in 20 years at least. Outside of games, I don't really buy software digitally, even. It's either FOSS or it's a subscription.
But anyway, the method of software delivery is tangential to the main point. Plenty of software exists that runs locally, regardless of how is paid for - whether subscription or one-off purchases, if it runs on your computer it relies on copyright law to protect the revenue stream for the developers. Without copyright laws, if one physical sale could be freely copied with impunity, sales would be vastly diminished to the point that many developers would just not bother and find a different industry to work in to earn a salary.