I believe you are probably only looking at the current state of the world and seeing how it "stifles competition" or "hampers innovation". Those allegations are probably true to some extent, especially in specific cases, but its also missing the fact that without those protections, the tech likely wouldn't be created in the first place (and so you still wouldn't be able to freely use the idea, since the person who invented it wouldn't have).
This sounds trivially true but I have some trouble reconciling it with reality. For example the Llama models probably cost more than this to develop but are made freely available on GitHub. So while it’s true that some things won’t be built, I think it’s also the case that many things would still be built.