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I haven't been able to find any English language reporting of the proposed update to their copyright law yet but Google translate has done a terrific job at it!

http://translate.google.com/translate?sl=ja&tl=en&u=...

> Japan on March 3, sources said.

That is some terrific reporting, right there.

The Japanese actually reads "The Agency for Cultural Affairs announced the change in policy on [December] 3rd."
Interestingly enough, apparently ignorance of the law has been a big enough argument that this amendment is adding a section basically saying "if you know that it's illegal then you have no excuse", to which Japanese game developers are now adding of FBI warning-esque messages like those seen in American videorecordings: http://kotaku.com/5705055/this-new-warning-screen-means-hand...
Won't the warez community just get rid of that warning?

Also, I think it's funny that they are aiming the message at a demographic that can't read kanji but can decipher complex legalese.

The linked article only talks about DRM however, as far as I can see. It says "data protected by encryption" is the target of the new law.
"複製行為については罰則は設けない。"

Translation: [The proposed modification to the law] does not establish criminal penalties for unauthorized copying.

I never really get laws that have no penalties. The lack of penalties merely reduces to a disagreement, and a disagreement as such doesn't equal any substance in a society. With criminal penalties a law would raise the stakes for everyone, including the law makers.

(Of course, the DVD/DRM case is probably about making it illegal first, much easier that way, and adding the penalties later, also much easier that way, in that "hey, this is already illegal!")

Japan, like many other countries including the United States, makes a distinction between criminal and civil infractions. If you suspect someone is violating your reproduction rights, Japan will allow you the use of the court system to enforce those rights, but will not use physical force on your behalf to compel compliance from the other party.
Tsutaya is not going to be happy. Considering how their shops always have piles of writable DVDs next to the cashiers, they obviously thrive on ripping.
First you make a law but don't enforce it. Nobody fights it off. Then when it is established, it starts getting enforced. If you want to steal away human rights (right to make copies of data that you own), you can't just do it all at once, you have to move slowly.