Worlds smallest GPS chip

The New Zealand company Rakon announced this week that they had created the smallest GPS chip ever. Measuring in at about the size of a baby's fingernail, the unit is small enough to be easily embedded in PDA's, Cellphones, and watches. The impact of this new chip is that it brings the potential of pervasive tracking and location services. Coupons sent to you as you stroll past shops, google local searches and ads on your cellphone, stalking your family and friends. With GPS chips this small how long will it be before people are being chipped?