I think there is a very important point here that people are missing in this discussion.
Internet IP addresses were never intended to have any sort of relationship with the physical location of the computer. It's not in the design. You often can often correctly infer someone's physical location based on their IP, but it is also very often wrong. For instance, with my home Telus IP address is often guessed that I live in places that are are a 3+ hour drive away from me.
Proxy servers and VPN networks are completely legitimate network technologies. Anyone who thinks that it is realistic for such things to be made illegal in any sense is just showing their ignorance of how pervasive these technology are today. You can't make a law that wishes the Internet works differently than it does, and then it would just "be so".
Given the fact that geographic position and IP addresses weren't ever meant to be closely mapped to one another, I don't think any technically savvy individual would feign surprise when it doesn't work. I also think that because the Internet will soon be (if it's not already) the dominant video content distribution system, that content licensing deals will soon map closer to how the Internet works, rather than how the the old rusty BDU systems of the past worked. In fact, I think we'll see situations where content owners and creators will "go direct" to the consumer and these "middle man" content marketing deals will be a thing of the past.
When that happens, this whole "OMG, my IP database guessed your location wrong" issue will just go away.