Whether or not that's a good idea, it hardly qualifies as "Orwellian".

agreed... but

Software Secure Inc., based in Cambridge, Mass., developed the device with $1.1-million in seed money from Troy [University]. In return, the university gets the first 10,000 Securexams that the company produces. If it sells more than that, the university receives a share of the proceeds.

I bet the students are pretty psyched to see their tuition going towards spy camera development... with the students being the presumed targets of the cameras.