That is pure myth. Do we not already have 'rampant piracy', as the music/tv/film/etc industry would say -- indeed, we have had it for 10 years. And what is the result? Well, it pretty much looks like we have more of everything than we ever had before! Has there been a great 'dying off of culture'? Do you have less good stuff to enjoy -- music, film, tv, software -- than in 1995 or before? Is anyone going to say that?! It seems ridiculous.
And this is more true of software than anything else, and there is a good reason. The most important ingredient of software production is not 'incentivization', not money. It is other software, other information. That is because it is leveraged unlimitedly by being copyable: a single sum of money can support a single piece of development effort, but a single piece of information can support any number of development projects.
The more completely you have and enforce copyright, the more you destroy that leverage.
And this is more true of software than anything else, and there is a good reason. The most important ingredient of software production is not 'incentivization', not money. It is other software, other information. That is because it is leveraged unlimitedly by being copyable: a single sum of money can support a single piece of development effort, but a single piece of information can support any number of development projects.
The more completely you have and enforce copyright, the more you destroy that leverage.