At my workplace, cameras are not allowed, including camera phones. This is standard in many high-tech companies and some banks too. If you tried to take a picture with a camera phone, security would escort you to the exit immediately.
Cameras can be really small now, and you can hide one in a lot of things. It wouldn't be hard for a spy to come up with something more clever and more discrete.
I guess this software simply converts your picture in pdf format, and probably does some image processing to get a sharper image?
Not a bad idea, and probably not that hard to do.