>Tell me, if I can just duplicate anything for free, how is anybody who produces IP (software, books, music, movies, etc) supposed to be paid?

By the people who enjoy the authors work.

Are you remotely tech savvy? Do you have a better internet connection than a 56K modem? So why didn't you stop buying software/music cds/DVDs etc, when you can get it all for free?
But maybe your afraid of a total collapse of the industry, like it happend back then when the music cassette was introduced. Or the video recorder. Or the TV. Or the LP. Or radio. All of which allowed easy duplication or free consumption of creative works. We wouldn't want to repeat the disaster that followed them, would we?

A book frees authors from having to sit down personally to tell stories to listeners. A record frees musicians from having to perform before an audience. A copy of software frees programmers from having to enter the numbers themself.
Treating these as intellectual property is wanting to eat your cake and still have it.