Now image if there weren't patents. The larger entities would simply wait for their smaller competitors, copy their products and then use their capital to more efficiently/cheaply manufacture/market them.

edit: While also maintaining massive private documentation stores that further give them a moat. Patents are public so you at least know what someone did 20 years ago even if you're a one person shop. Without them you'd be in trouble unless you had access to a large companies massive and very private internal invention documentation store.