Does capitalism lead to a bootleg economy?

As companies establish themselves with brand names, it becomes harder for small companies to break in to a market.  When companies control supply through high production volume and price through cost cutting equipment and manufacturing, then there is a considerable barrier to entry that few small companies will be able to break into.  The only reasonable way to make money in a free market is to work outside the system and hope no one cares.  Look at music, games, anime- the expensive, official versions have a high price and less demand than a cheap bootleg of high quality (or even a free download).  Look on Ebay and you'll see how few sales are actually legit.  Full series boxsets are available on VCD or DVDR, and customers buy because they're much more cost effective than buying each season at full price. 

Look at China and just how widespread their bootlegging is.  Not only do they have more professional packaging and disc making, but they export all over the world.  Even if a company could legitimately afford to license movies,  get a pressing factory, print packaging, and distribute throughout the country, they would have tremendous difficulty making a profit.  Copying someone else's work without permission becomes the only real way to profit.  Is the US headed towards this path as well?  

>>10
What China bootlegs are the products of Capitalism, not Communism. You've made his point, you just misinterpreted it. Bootlegging is widespread in all of Asia for a number of other reasons.

You can't sell your product for an absurdly high price, complain that no one is buying it, and then sue people when they bootleg it for lower. Only retards do that, retards that shouldn't have gotten into the market. If you want to compete with the bootleggers, then compete with their strengths (i.e.: price, availability, ease of purchase) instead of crying to Uncle Samchu.

It's common in Asia for there to be no availability of the real merchandise, but only bootlegged versions. Whose fault is this?