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?  

>>14
I love how the lowest common denominator champions their nation's economy, when they had absolutely no part in it. What are you proud of? Rich, white protestant men in the 70s investing millions of dollars into engineering? That's the American spirit, all right. Have pride!

Take a gander at the last 30 good big movies in the US. How many of them were Asian clones? 15? Haha, Americans. Also, you do understand that the most pirated media are games and software, right? And so you do realize those are both created in every way by all Asian countries, right?

On top of all that, our "superiority" comes exclusively from being eight thousand miles from Japan and entering a war when everyone was dead. Don't forget that American. Your house's infrastructure has dead Jew babies to thank.