The idea of exchanging paper for material goods is also absurd. There are also vested interests that rely on maintaining this illusion. They want people to believe that something like a tesla can actually be exchanged for worthless paper. None of this is real so there's endless fights against people who try to make illegal copies of the paper. It's an endless fight, because it's not actually real.

The entire economy is an illusion. But it works because most people buy into the hallucination. IP is much of the same thing. If there's only a few people creating IP laws it doesn't mean anything. It only works because the majority of people respect said IP laws. IP exists because the majority hallucinates it into reality.

Even the concept of "laws" are illusions. They are total fabrications created by mankind. Your entire life is built upon thousands of fabricated concepts and illusions that are in many ways incompatible with your ancient genetic biology. So saying that IP isn't "natural" is meaningless.