I don't have a clear answer, but it's really interesting to look at places like Shenzhen in China where copyright is largely ignored. The tech industry there is booming with competition, and good ideas are adopted (or stolen depending on how you look at it) quickly between products. In many ways it seems better for the consumer.
Edit: I might be muddying the waters here between copyright and patents, but it seemed relevant to bring up anyway given the discussion of capitalism.
I think we need to separate copyright, patents, and trademarks.
Trademarks are obviously useful and helps the consumer distinguish between products.
Patents incentivize the sharing of novel technology by granting short term monopolies. But many patent systems around the world are largely besieged by trolls. IMO, patents should be tied to intent to manufacture. If you don’t, it should expire sooner. Your example about shenzhen tech scene is mostly around this issue of patents.
Copyright on the other hand, is intended to allow artists to gain monetary rewards from their work. This one is probably the most complex especially in the age of AI. I don’t have good thoughts there, as there are so many edge cases. I definitely agree the length of copyright is way too long.
This is a very good point, trademarks are pretty much identity theft protection for things other than individuals and that's pretty important to have.
Copyright and patents... lately, I'm feeling like the world is just kicking and screaming against the single most beneficial aspect of digital technology, the ability to freely copy information. If the ability to freely copy information makes something unprofitable, honestly, I believe the importance of not nerfing that benefit comes first. It would be better than the cyberpunk DRM hellhole we've created for ourselves.