You're ignoring the fact that other forms of property are also privileges provided by the government.
I'm not at all convinced that piracy will win out given the increasing intrusiveness of governments and ISPs into network traffic. The net is built by corporations who will filter if the government tells them to even if they are not doing so for their own commercial reasons (e.g. AT&T u-verse who block torrents)
The internet itself is privilege provided by the government, as is the legal basis for the corporations that maintain it.
The internet is not a thing. It's a set of relationships between machines, themselves owned by people. These relationships and the ownership of the machines are privileges granted by the government.
Property rights are a privilege. Intellectual property rights are a privilege. The internet is slowly getting rid of intellectual property rights via piracy and free software. That's my argument, and what you said does not "defeat" it, or whatever.
I'm not at all convinced that piracy will win out given the increasing intrusiveness of governments and ISPs into network traffic. The net is built by corporations who will filter if the government tells them to even if they are not doing so for their own commercial reasons (e.g. AT&T u-verse who block torrents)
The internet itself is privilege provided by the government, as is the legal basis for the corporations that maintain it.