ATF Software Company: Another government entity goes into competition against the private sector

By Jeff Knox

About a year ago, James LaMonte, founder and Chief Executive Officer of Coloseum software, was ready to release an innovative software package. He had a client in Idaho, Red's Trading Post, who wanted to install the software to reduce the number of minor errors on 4473's and other federally mandated records. But ATF rejected the variance request and asked for more information about the software. They issued conflicting opinions, and generally held up the process for several months before finally requesting a meeting with LaMonte.

If ATF wouldn't approve dealers to use the software, Coloseum's run would be a short one, so LaMonte agreed to the meeting. When they met, ATF assured LaMonte that they were not working with any other software developers and that any information he shared about his program would be held in the strictest confidence. They said they needed more detailed information before they could grant the requested waiver to Red's or any other dealer wishing to use Coloseum's products.

An ATF employee was assigned as liaison between ATF and Coloseum, studying Coloseum's software, asking lots of questions, and implying that open cooperation would lead to ATF support for Coloseum's products. After several weeks of this, ATF called another meeting with Coloseum to discuss the release of the software. At that meeting, LaMonte learned that ATF wasn't working with other companies, they were developing their own software for filling out 4473's and the ATF employee who had been studying Coloseum's software was the head of ATF's development team.

A month later, in mid-November, ATF held a press conference to announce the release of their electronic 4473. Not only were they making the software available, they were giving it away for free to any dealer who wanted it. On top of that, ATF announced that they were lifting the requirement that dealers get a waiver from ATF before switching to electronic records. They even mentioned that dealers could also use commercially available software for completing 4473's if they wanted to pay for it.

The National Shooting Sports Foundation participated in the press conference, praising ATF's decision to develop and release software that would make dealers' businesses run smoother. The NSSF rep dismissed rumors of ATF having a "back door" into the program, stating unequivocally that the ATF software was not connected to any other government systems and was not passing on any data about gun buyers. He insisted that NSSF would never support such a system. That was reassuring until you realize that NSSF had to be relying on assurances from ATF. Folks we've talked to say that when they installed the ATF software on a test computer it didn't seem to "phone home," but it was virtually impossible to uninstall.

Whether ATF engaged in industrial espionage and pirated ideas and features from the Coloseum software is hard to say. But ATF clearly blocked Coloseum's introduction of their comprehensive firearms management software for months for no apparent reason other than to keep Coloseum from beating ATF to market. It is also clear that ATF's release of their E-4473 puts them in direct competition with Coloseum and any other company who wants to develop a computerized 4473.

Comparison of the ATF software with Coloseum's offering and that of AFS, another commercial developer, shows that ATF's version is inferior to the commercial products. One striking difference is that while the stated object of the software is to streamline the buying process and reduce minor errors, the ATF version will accept obviously incorrect information. Both the Coloseum and AFS products flag simple errors and require correction before proceeding.

The biggest difference between Coloseum's software and ATF's is that ATF is offering only a 4473 form filler. The 4473 is just one feature of a comprehensive business software suite from Coloseum. Their system, eBook Pro, includes an electronic form of the Acquisition & Disposition Record, the dealer's federally mandated log of all guns entering and leaving the business, and practically any other form a dealer, distributor, manufacturer, or importer needs to conduct business. Coloseum also offers a "light" version of their eBook inventory software for private collectors called eBook Home. Dealers, distributors, and customers using eBook can easily transfer and consign guns through the system without fear of typos or mistakes. And firearm information can easily be transferred from the A&D record directly onto a 4473 eliminating the need to manually enter that information – and the possibility of errors there.

Perhaps the biggest challenge facing Coloseum and their competitors isn’t unfair competition from the government or managing complex records systems, but getting gun dealers, who are notoriously resistant to change, to finally enter the computer age.

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Full disclosure: Coloseum has been providing free copies of eBook Home to contributors to The Firearms Coalition and is now offering their full eBook Pro system for a contribution of $500 or more. We appreciate their help, but I don't think it affected my view of this story. – JAK

Permission to reprint or post this article in its entirety is hereby granted provided this credit is included. Text is available at www.FirearmsCoalition.org.