By definition, capitalism requires free markets. I think you're mistaking it for corporatism, like we have now, where government and business conspire to control your life.
So, if the state doesn't enforce property laws, verdicts of disputes, etc. then how can it exist? In regards to this thread specifically, we have a video game that is in violation of a law. Now, why is that law in place? Unfortunately I don't know the roots of the law so I can't answer it out of anything more than speculation, but knowing that would really help us understand what is going on.