@ravidya
The trickiest thing about capitalism is that it's not really a structured set of rules, so much as an observation of emergent behavior. Supply and demand are going to work the exact same way whether we know about it, conceptually, or not. It's not a governmental system so much as it's what emerges out of a relatively hands-off governmental system. e.g. there's no king directing all commerce.
Patent system is some useful government intervention as it provides some degree of protection for a research investment, which in complete freedom, has inherent risks. You can spend millions on development a novel technology, and if there's no way to have even a short exclusivity period on that technology, those millions are worth basically nothing if the procedure is publicly known, which is how you end up with heavily guarded trade secrets and run the risk of technologies ceasing to exist when the guardians of those secrets pass away unexpectedly. With patents, once that period is over, the technological knowledge effectively belongs to the public at large and can be independently developed from there.
So two paragraphs in I just realized I haven't actually contributed anything meaningful to the discussion, so I'm just gonna hit the submit button in shame.