Snaptell’s application takes an input image (of an album, DVD, or book) supplied by the user and identifies that product, linking to 3rd party services. This is equivalent to the impressive TinEye Music but with a broader scope. As Andrew points out, the app performs very well at recognising these products.
Algorithmically the main problems faced by someone designing a system to do this are occlusions (e.g. someone covering a DVD cover with their thumb as they hold it) and transformations (e.g. skewed camera angle, or a product that’s rotated in the frame)
There are a number of techniques to solve these problems, (e.g. the SIFT and SURF algorithms) most of which involve using repeatable methods to find key points or patterns within images, and then encoding those features in such a way that is invariant to rotation (i.e. will still match when upside-down) and an acceptable level of distortion. At query-time the search algorithm can then find the images with the most relevant clusters of matching keypoints.
It seems like Snaptell have mastered a version of these techniques. When I tested the app’s behaviour (using my copy of Lucene in Action) I chose an awkward camera angle and obscured around a third of the cover with my hand and it still worked perfectly. Well done Snaptell.