As far as cheating "the competition" we were actively encouraged to pirate adobe n autodesk software in college. So everyone was pretty much on a level playing field in that. (As Ethan said they sort of encourage that too. Unless you're a business then they'll come down hard, but student use is awesome for them cos they know when you're in a position to be buying software, well if Photoshop is king of the torrents then you'll be buying that instead of Paintshop Pro.)
As far as games go, about the only competition between two gamers would be their skill at MP and achievements. Most pirated games you can't really do the MP, at least against paying customers, and don't get achievements.
Copying recipes would be patent infringement. I think this is where a lot of the issues arrive in discussion is that for most folks patents,copyrights n trademarks are the same thing.
The disc the game goes on and the engine that runs it - patented
The name on the box - trademarked
The characters and locations within the game - copyright.
And the rules weren't really meant to get at "the little people" but the big people. i.e to stop...Square from making a game set in Hyrule. Or Atlus making a "Legend of Zelda" game. Or Nintendo making a controller with a glowing orb on the end. It's why Disney tends to be at the forefront of copyright laws, they don't do it to stop joe bloggs from torrenting Beauty and the Beast, they do it to stop Dreamworks from making a Mickey Mouse movie.