Actually had a friend who worked in sales selling one of these services.
The way it works is this:
The company hires a room in Tokyo and fills it top to bottom with (legally purchased)
decoder boxes. The output from these is sent over the internet to paying customers
in foreign countries -- in the UK in the case of my friend. They get access to these
"proxied" services, the idea being that they can watch Japanese TV programs from the
UK without needing all the special satellite equipment.
The (stupid) copyright issue is down to regional licensing of TV programs
and films, which is why the established broadcasters hate these services and
try to portray them as criminal / pirates when of course they are no such thing.
Anyway, hope this explains a bit more what's going on here. I see it's
business as usual for openness and transparency in Japanese politics/law ...
Rich.