"That 'actually getting sued' part is your induction in to the loop."
No, it's not. It's not always clear what is illegal, what is not, what is infringement, what is not.
Rather than having a totalitarian authority create, divide and control IP etc. we have adversarial law and companies can file suit and work it out in court.
When there isn't overt corruption in the system, it works reasonably well.
That we're even having this conversation over the internet in 2018 is evidence that it's not 'negative sum'.