I think I'd probably politely talk to the neighbor and make sure they understand the possible ramifications of their actions. Perhaps they could bait earlier in the year, or after the season was over. If all they're interested in is pictures, then I wouldn't think it would be a big deal, especially if they know what the rules are and the potential problems they could be causing you.
You could also quiz your local conservation agent and ask them just what you can and can't do in a situation such as this.