It also manifests in other strange ways that I'd summarize as killing our culture. Think of nursery songs as an example. Recall Little Miss Muffet sitting on a tuffet eating her curds and whey. I mean what is a tuffet, who eats curds and whey? The reason we don't have nursery rhymes in present day is that any of those songs are wrapped up in copyright and can't legally be shared.
The only saving grace about your Pong example is that game mechanics aren't copyrightable, so we thankfully have countless clones of Pong to play. Interestingly the same doesn't apply to Tetris, for some reason EA seems to have been able to succeed in largely removing Tetris clones.
