Kenwood’s Pen Navigation System

Kenwood thingy (AVING) Kenwood announced a pen navigation system at the Tokyo Motor Show: details are sparse (see also Coolest Gadgets and Engadget), but it seems to involve a pen that, when scanned over a paper map, transmits data wirelessly to a GPS system. For the life of me, I can’t figure out how this works — does it require special, machine-readable maps? — or what problem, exactly, this solves (if any).