Found this via slashdot.
http://news.com.com/2100-1023-960151.html
"In a ruling that could change fashions in Washington state, the supreme court there has ruled that "up-skirt cams" do not violate voyeurism laws.
The Washington Supreme Court judges said that two men who took surreptitious photos and video of women and girls using tiny cameras "engaged in disgusting and reprehensible behavior." However, the judges said they did not infringe on any reasonable expectations of privacy because the images were captured in public places.
"The voyeurism statute, as written, does not prohibit up-skirt photography in a public location," the judges wrote in an opinion issued earlier this month.
(article continues, but that's the good part).