PLACES. IT'S NOT JUST LAW ENFORCEMENT WATCHING. HERE'S ABC'S MONA KOSAR ABDI. >> Reporter: IT'S GAME DAY AT MADISON SQUARE GARDEN. BUT UNBEKNOWNST TO ATTORNEY BENJAMIN NORREN, HE'S BEEN TRACKED WITH FACIAL RECOGNITION SOFTWARE. >> YOUR TICKET IS NOT VALID. >> Reporter: ULTIMATELY DENIED ENTRY TO THE KNICKS GAME. >> YOUR TICKET HAS BEEN REVOKED AND YOU ARE NOT INCLUDED IN. >> Reporter: HIS COLLEAGUE BARRED AS WELL. >> I'VE BEEN A KNICK FAN MY ENTIRE LIFE. I MET MY WIFE AT MADISON SQUARE GARDEN. THE REASON I ACTUALLY ASKED HER OUT ON A DATE WAS THAT SHE KNEW WHO THE KNICKS' FIRST-ROUND DRAFT PICK WAS IN 1980. THE GARDEN SENT ME A JERSEY WITH MY NAME ON IT. >> Reporter: THE LIFELONG NEW YORKER HAS BEEN A KNICKS SEASON TICKET HOLDER FOR OVER 40 YEARS. >> I WAS WORKING, AND I WAS ABLE TO BUY A KNICKS SEASON SUBSCRIPTION. IT WAS 1976. I THINK THE TICKETS WERE $12.50 EACH. AND IT WAS LIKE ONE OF THE GREAT MOMENTS OF MY LIFE THAT I HAD SEASON TICKETS. AND I HAVE HAD THOSE SEATS UP UNTIL THEY WERE REVOKED OR TERMINATED BY MADISON SQUARE GARDEN FOR OVER 47 YEARS. >> Reporter: NORREN AND HUTCHER TWO OF SEVERAL ATTORNEYS THAT HAVE BEEN DENIED ENTRY INTO MSG ENTERTAINMENT FOR BEING INVOLVED IN LAWSUITS AGAINST MSG ENTERTAINMENT. SOME BEING PICKED OUT OF THE CROWD BY SPECIAL CAMERAS THAT CAN IMMEDIATELY IDENTIFY PEOPLE. IN YOUR OPINION, THEY'RE 100% RETALIATING FOR YOU AGAINST THIS CASE? >> UNEQUIVOCALLY. I HAVE NEVER HAD ACTION TAKEN AGAINST ME AS A LAWYER BECAUSE OF SOMETHING I HAVE DONE WITHIN THE CONTEXT OF MY JOB. >> Reporter: THE PRACTICE USING FACIAL RECOGNITION TO BAN PEOPLE IS RAISING ETHICAL AND LEGAL QUESTIONS WITH POTENTIAL RIPPLE EFFECTS BEYOND MADISON SQUARE GARDEN. >> IT IS VERY DYSTOPIAN. IT IS VERY 1984-ISH. HOW FAR IS THIS TECHNOLOGY GOING TO GO THAT PEOPLE ARE GOING TO BE ABLE TO USE THIS TYPE OF TECHNOLOGY TO -- TO TAKE ACTION THAT IS CLEARLY NOT WHAT IT WAS ORIGINALLY INTENDED? IT'S FRIGHTENING. >> Reporter: TODAY, NEW YORK STATE ATTORNEY GENERAL'S OFFICE ANNOUNCED THAT THEY WERE LOOKING INTO MSG ENTERTAINMENT'S CONTROVERSIAL USE OF FACIAL RECOGNITION, ADDING THAT THE PRACTICE MAY VIOLATE THE NEW YORK CIVIL AND HUMAN RIGHTS LAWS. AN MSG SPOKESPERSON TELLING ABC NEWS IN PART, "IT IS NOT OUR INTENT TO DISSUADE ATTORNEYS FROM REPRESENTING PLAINTIFFS IN LITIGATION AGAINST US. TO EVEN SUGGEST ANYONE IS BEING EXCLUDED BASED ON THE PROTECTED CLASSES IDENTIFIED IN STATE AND FEDERAL CIVIL RIGHTS LAWS IS LUDICROUS." >> SO FACE RECOGNITION USE BY A PRIVATE COMPANY, BY ENTERTAINMENT VENUES, IS PRETTY COMMON THESE DAYS. I THINK WHAT IS UNUSUAL ABOUT THIS SITUATION IS THAT MADISON SQUARE GARDEN WAS USING IT TO IDENTIFY PEOPLE AND KICK THEM OUT OF THE VENUE FOR NO REAL REASON. >> Reporter: THREE NEW YORK STATE LAWMAKERS HAVE ALSO INTRODUCED A BILL TO UPDATE A CIVIL RIGHTS LAW PROTECTING PEOPLE'S RIGHTS TO ATTEND PUBLIC PERFORMANCES, EXTENDING IT TO SPORTS. >> YOU'RE NOT PERMITTED TO REFUSE ADMISSION OR TO EJECT OTHERWISE PEACEABLE PEOPLE FROM A PUBLIC PERFORMANCE. AND THIS IS REALLY AIMED AT PERFORMANCES AT MUSIC HALLS, SO-CALLED LEGITIMATE THEATERS, BURLESQUE THEATERS, OPERA HOUSES, DANCE HALLS. SO IT MAY BE THAT NEW YORK LAW WOULD SAY YOU CAN'T EXCLUDE PEOPLE FROM MARIAH CAREY, BUT YOU COULD EXCLUDE PEOPLE FROM THE KNICKS. >> ALL THE GREAT KNICK TEAMS OF THE '90s -- >> Reporter: LARRY HUTCHER AND HIS TEAM HAVE TAKEN LEGAL ACTION CITING THAT CIVIL RIGHTS LAW. WHAT WOULD YOU SAY TO SOMEONE WHO'S, "TOUGH LUCK, YOU'RE BANNED FROM A BASKETBALL GAME SDWRIRKS? BASKETBALL GAME, IT DOESN'T GO - TO THE HEART OF IT. IT IS A CONNECTION TO THE CITY, TO THE PLAYERS. TO DISMISS IT AS, IT'S JUST A BASKETBALL GAME, THAT'S WHAT LIFE IS. THAT'S WHAT MAKES LIFE WORTH LIVING. THESE TYPES OF CONNECTIONS. AND IT'S MEANINGFUL. >> I DON'T THINK THERE'S ANYONE THAT'S MORE PROUD TO BE FROM BROOKLYN OR FROM NEW YORK THAN ME, AND THERE'S NO PLACE I'D RATHER BE. >> Reporter: ATTORNEY BEN PANCHESKY IS BORN AND RAISED IN NEW YORK, LONGTIME FAN OF THE CITY'S LEGENDARY SPORTS FRANCHISES. >> I'VE BEEN A RANGER AND KNICK FAN MY ENTIRE LIFE. MADISON SQUARE GARDEN TO ME WAS THE MECCA. >> Reporter: HE'S A FIERCE ADVOCATE FOR THE DOWNTRODDEN. AS DOCUMENTED IN A 2010 EPISODE OF ABC'S "WHAT WOULD YOU DO?" >> STOP NOW. >> Reporter: WHERE HE STOOD UP FOR A WOMAN BEING HARASSED ON HIDDEN CAMERA. >> A LOT OF PEOPLE WOULD SAY THAT'S HEROIC. >> IT'S NOT HEROIC, IT'S THE RIGHT THING. IF PEOPLE BEHAVED THAT WAY, WE WOULDN'T HAVE ALL THESE PROBLEMS. >> Reporter: HE WAS ALSO BARRED ENTRY FROM MSG ENTERTAINMENT-OWNED PROPERTIES. JANUARY 10th, KICKED OUT OF A RANGERS GAME. AT FIRST HE SAYS HE DIDN'T UNDERSTAND WHY. >> THREE GENTLEMEN COME OVER TO ME, DRESSED IN MADISON SQUARE GARDEN SECURITY UNIFORMS, THEY SAY, "ARE YOU BENJAMIN PANCHESKY?" "YES, I AM." "DO YOU HAVE IDENTIFICATION?" "WHAT'S THIS ABOUT?" THEY GIVE ME A PIECE OF PAPER. IT SAYS BECAUSE WE'RE REPRESENTING A PLAINTIFF IN A LAWSUIT AGAINST MADISON SQUARE GARDEN, I'M BANNED FROM ENTERING THE GARDEN. I LOOK AT THE PIECE OF PAPER. I SAY TO HIM, "ARE YOU KIDDING ME? ARE YOU SERIOUS?" THEY ESCORTED ME OUT OF THE BUILDING IN FRONT OF EVERYONE, AND I WAS BACK IN THE STREET. SO I GOT MYSELF A PRETZEL AND I WENT HOME. >> Reporter: AN MSG SPOKESPERSON SAYING IN A STATEMENT, "MSG INSTITUTED A STRAIGHTFORWARD POLICY THAT PRECLUDES ATTORNEYS FROM FIRMS PURSUING ACTIVE LITIGATION AGAINST THE COMPANY FROM ATTENDING EVENTS AT OUR VENUES UNTIL THAT LITIGATION HAS BEEN RESOLVED." ADDING, "IMPACTED ATTORNEYS WILL BE WELCOMED BACK TO OUR VENUES UPON RESOLUTION OF THE LITIGATION." FACIAL RECOGNITION IS BECOMING INCREASINGLY COMMON AMONG PRIVATE COMPANIES. SOME RETAILERS USE IT TO IDENTIFY SHOPLIFTERS WITH SOME CASINOS USING IT TO KEEP OUT GAMBLERS THEY FEAR MAY CHEAT. >> CONSISTS OF TAKING AN IMAGE, EXTRACTING FEATURES FROM THE FACE, AND THEN MATCHING THOSE FEATURES AGAINST FEATURES STORED IN A DATABASE OF IMAGES OF PEOPLE. >> Reporter: DR. METAXAS AND HIS TEAM AT RUTGERS UNIVERSITY WORK ON FACIAL RECOGNITION TECHNOLOGY. HIS LAB HAS RECEIVED FUNDING FROM ALL MAJOR GOVERNMENT AGENCIES, INCLUDING NASA. >> BASICALLY, IT FINDS KEY POINTS ON THE FACE -- EYEBROWS, EYES, THE PERIMETER OF THE FACE AND THE MOUTH. >> WHAT IS THE MOST IMPORTANT FEATURE THAT IT'S PICKING UP ON RIGHT HERE? >> BOTH SHAPE AND TEXTURE. SHAPE IS VERY IMPORTANT BECAUSE THAT MAKES IT VERY ACCURATE. >> Reporter: THE TECHNOLOGY IS SO ADVANCED THAT WEARING GLASSES OR DIFFERENT HAIRSTYLES -- >> AS YOU CAN SEE HERE, IT PICKED UP HER FACE. >> Reporter: OR EVEN A BEARD CAN'T HELP YOU BEAT THE SYSTEM. THE TECHNOLOGY, THOUGH VERY ADVANCED, IS ONLY AS GOOD AS THE DATABASE THAT IT PULLS FROM. FOR IT TO ACTUALLY IDENTIFY SOMEONE BY NAME, THAT PERSON'S IMAGE MUST ALREADY BE IDENTIFIED AND UPLOADED INTO A DATABASE. MANY PHOTOS ARE READILY AVAILABLE ONLINE. WHERE DO YOU SEE THIS INDUSTRY GOING IN THE FUTURE? >> I SEE THIS TECHNOLOGY, CAMERAS ARE GETTING BETTER, COMPUTERS ARE GETTING FASTER. AND I THINK OVER THE YEARS, IT WILL BECOME CHEAPER AND USABLE BY ANYBODY. >> Reporter: CRITICS SAY FACIAL RECOGNITION CAN BE PRONE TO RACIAL BIAS. STUDIES HAVE SHOWN DISPARITIES WHEN USING THE TECHNOLOGY. >> WE CERTAINLY HAVE A LOT OF INACCURACIES IN FACIAL RECOGNITION, ESPECIALLY FOR PEOPLE OF COLOR AND PEOPLE WITH DARKER SKIN. ARE GETTING INVOLVED.HE POLICE - AND SO POLICE ARE COMING TO PEOPLE'S HOUSES AND ARRESTING PEOPLE FOR CRIMES THAT THEY DIDN'T COMMIT. >> Reporter: BEN PANCHESKY IS DETERMINED TO FIGHT BACK AGAINST THE PRACTICE THAT HE BELIEVES IS MORALLY WRONG. >> FACIAL RECOGNITION USED TO BAN PEOPLE, USED TO SELECT PEOPLE, IS DANGEROUS. AND IN THE WRONG HANDS CAN LEAD TO TERRIBLE THINGS. AND IT COULD BRING US DOWN A ROAD WHERE THERE MIGHT NOT BE ANY RETURN FROM. IT'S IMMORAL, IT'S UNETHICAL, AND ONE DAY WE WILL MAKE IT ILLEGAL. >> Reporter: LARRY HUTCHER IS HOPING HE WILL SOMEDAY BE ABLE TO SEE HIS BELOVED KNICKS PLAY AT HOME AGAIN. A JUDGE RECENTLY GRANTED A PRELIMINARY INJUNCTION, ALLOWING LARRY AND HIS TEAM TO ATTEND MUSIC AND ENTERTAINMENT EVENTS. BUT SO FAR, NO SPORTING EVENTS. WHAT WOULD IT MEAN IF YOU COULD NEVER GO BACK TO MADISON SQUARE GARDEN AGAIN? >> HEARTBROKEN. HEARTBROKEN. I LOVE THE KNICKS. I HOPE I GET MY SEATS BACK, NOTWITHSTANDING EVERYTHING THAT HAS TAKEN PLACE, A