There seems to be confusion about what and where an IP address is and where it comes from. Lets take this scenario: you live in a house, you have an Internet Service Provider (IP) you pay for internet connection and you have a router.
in the majorty of cases your IP address should be assigned to you by a router, in the event you have a router your Internet Service Provider will assign another IP to the router, to get it to be able to let every device connected to it use the internet. (if you did not have a router your ISP will assign the IP from their servers to your computer and you would only have one internet connection in your house)
To simplify this we will stick with IPV4 which uses the xxx.xxx.xxx.xxx format, not IPV6.
Every ISP has a block of IP address avaiable to them to give out, each ISP is given a unique set by an origination that does this. No two ISP's have the same block of IP addresses, they can't or they would be conflicting with one another.
Your router uses an internal network address that are managed entirely inside the router, and at no point do these internal IP's out into the internet. Think of your router as a "waiter" between the "customer" (your computer), and the "kitchen" (the internet)
Now for example your ISP assigned you a IP address to your monthly account of (a random number I'm making up) 218.44.50.11. Your router assigned your computers an internal IP addresses, it could be 192.168.1.102, or 10.1.1.105, or some internal IP address unique to your router. Again, internal IP's do not go out to the internet. So now the user on computer 192.168.1.102 wants to go to Apple.com , They type in "apple.com" to their brower and hit return. The computer on192.168.1.102 sends that info to the router, the router knows who asked (192.168.1.102 asked) then the router on 218.44.50.11 goes out to the DNS server of the ISP or whoever they use, then the DNS severs sends the information for Apple.com back to 218.144.50.11 (the router) and the router sends information from 17.172.224.47 aka "apple.com" directly back to 192.168.1.102; the computer that asked for it. if your iPhone on 192.168.1.118 asked to go there your router would know to go give that information back to 192.168.1.118. Because the router uses addresses like 192.168.1.xxx or 10.1.1.xxx there are likely billions of devices using these IP's to talk to routers, but not getting past the router which has an IP assigned directly by the ISP.
When you get "IP address is in use" What is very likely the problem is that the computer that was using 192.168.1.102 today, was not using it two days ago or a week ago, and it might have been your iPhone using 192.168.1.102 or your apple TV using 192.168.1.1012 or some other device in your house using 192.168.1.102 and your router did not stop the lease on the IP address when it assigned your computer the same IP address. If that is the case you have a problem with the router, reboot it, or if it keeps doing it it may be broken and unable to stop the "lease" on 192.168.1.102
in this event you need to address the problem with the router which is responsible for the internal IP conflict.