Video games are a perfect example of how innovation all but stops when a few companies have access to all of the resources. Companies like EA, Ubisoft, Activision Blizzard all make mostly hot garbage these days because they 'innovated' themselves into making the same 4 games over and over. It's happening with movies too where everything is either a sequel or a remake because recognizable IP has been deemed more important than making something actually good.

Video games have always been about copying the other guy and making it better though. Blizzard famously akways just made the best parts of all other games in the genre packaged up with cool looking cinematics. Every single FPS borrows from every other FPS any time something new comes along. And thankfully when Nintendo tried to stop it with Palworld they (mostly) got egg on their face.

The one famous example that did stick that I can remember is warner bros patented the nemesis system in Shadow of Mordor. Nobody can use that actually rather cool idea until 2036 and it hasn't been used in a decade now. Real cool stuff and definitely pushed the industry forward.

No. Patents and copyright are there to promote the progress of science and the useful arts.