Aside from the fact this is japan, where there is no fair use, the men were "posting articles to a website as part of a conspiracy to unfairly generate advertising revenue."
Not that you've used their work without paying.
Surely this is already ironed out, no? What are laws regarding transcriptions?
Yes this is ironed out. It's completely illegal, as it should be. No question about it.
If you're translating subtitles (without accompanying images) for someone to use together with the original media, then there's a good argument that's legal (even though many courts disagree), since you're not taking away from sales -- you might even be helping with them.
But creating a comic-book version of a movie you can read instead of watch? That's just blatant copyright infringement, period.