Hentai Doujinshi
Japan has a very interesting world of media. Although they have mainstream manga and anime, which has its copyrights and trademarks, there is another world underneath it, a world where independent artists are allowed to freely play with these very same copyrighted properties, in parody works, and even make money from them. These groups of artists are called doujin circles, and the products they create are often termed as doujinshi. That is only the tip of the iceberg though. Inside that world of doujinshi, a lot of which is harmless fan fiction based on mainstream properties, there is yet another world, the world of hentai doujinshi.
Hentai doujinshi tends to take the very same copyrighted characters and stories and give them an X-rated make over. For every popular traditional manga, anime or even video game, there are hentai doujinshi which create adult stories, or just situations, in which the characters bare all and do everything imaginable. Hentai doujinshi is hardly frowned upon by the Japanese market. It is, in fact, a huge business bringing in millions on a single doujin download site. The major publishers look the other way, as far as copyright is concerned, because these works only bring more popularity to their properties and foster a new generation of artists who may one day make it to the mainstream.