Proof

Liberterian economists think that regulation hampers the proper running of capitalism. I think what they intend to say is, regulation stops the market from functioning efficiently. Capitalism and the market are two different things. Capitalism being a method for running a market.

Here's all the evidence you need for the profits of industry being aided by regulation. South Korean anti-piracy laws regulate the downloading of media products. The media industry is then able to profit from their labors. Media companies are producing goods, correct? They should be compensated for those goods, correct? At least, that's what a capitalistic system would have everything be. Hence the need for regulation, in the form of anti-piracy laws.