It's not about government .. it's about commercial use ..
you can still use IP-restricted software for personal use .. as you can also re-implement every patented piece of software/hardware or algorithm
IP restricts COMMERCIAL use ..
at least that's my understanding of IP .. though I am not a lawyer ..
IP is about applying existing (and widely accepted) rights regarding tangible property to ideas and other forms of intangible "property".
It has nothing to do with "commercial" or not. If something is your property then you have the right to control how and if other people can use it. You can exert this control by granting a license. In some jurisdictions you can also waive your rights by making your property public domain.
It also has nothing to do with "open source" (that's why the FSF doesn't like the term "open source"). Open source means you put the source code in some place where everyone can see it. That doesn't imply that anyone can actually *use* that source code without paying a license fee.