Why is cosplay in Japan potentially illegal?

Popular hobby and subculture, cosplay, seemed to come under attack by the Japanese government this year after the Japanese government announced that cosplay would now be subject to Japanese law. While cosplay has generally been encouraged and not seen as infringing, this shift in Japanese copyright law makes some sense because:

• cosplayers must rely on third-party protected works to provide the inspiration for the characters they dress up as; and

• because cosplay has now evolved to the point that popular cosplayers can earn money through appearance fees and endorsements, which is arguably profiting off of the protected work of others.

Read about the new copyright law in Japan that affects cosplay.