It's incorrect. The copyright holder of any work is obviously well within their rights to yank it from shelves (physical or otherwise). That doesn't make piracy legal.

That's because it's bullshit. (IP-trained attorney here, not legal advice.)

IP law is like real property law in the sense that it provides the owner the power to exclude others from using it. As with real property, there is no requirement that the owner be using the subject property in an economically viable way.