The planet was ruled by plutocratic families. Its western continent was covered in plains and home to most commerce and industry; its eastern continent, covered in mountains, had numerous luxurious, sprawling estates inhabited by the plutocrats. In the far east was an inhospitable and mysterious peninsula.
The Morses were forced to adapt when they became subjects of the xenophobic Galactic Empire. They developed two principal exports: ambassadors and commercial representatives, many of whom went to Coruscant to work for the government. They imported a "little bit of everything."
Long before the Galactic Civil War, the planet was ruled by the Machinist Theocracy. The Machinists had terraformed two other planets in the system, Yasla and Ymura. A sect of the Machinists known as the Koroli Masters were responsible for the AI Project. When the project was condemned, the Machinists fled to Temple Maudit in a desolate, sterile peninsula of Karlatt's eastern continent.
The freed Morses then outlawed droids. According to law, any droids brought to the planet would be interdicted by enforcers known as the Pomak.
In the era of the Galactic Civil War, a group of Rebel agents discovered archives that were 7,000 years old. The archives told of how the AI had been created by scientists such as Relaur Kroford, but had become deviant and indestructible. Relaur Kroford, the archives said, had been a native of the planet Karlatt.
The Rebel Alliance forged the group passports as ambassadors and commercial accreditations, since Karlatt was known for its diplomatic and merchant activity. At the planetary capital, Grand Nord, the agents applied a prearranged code on a standard communicator. As a result, a metallic voice told them to go to the Park of the Fumes to meet their local Rebel contact, Madame Kanta.
The agents went to the home of the plutocrat Maxeil Kroford. He revealed that the only individual who knew the secrets passed from the Koroli Masters generation-to-generation was his brother's son, Linder Kroford, who was imprisoned in the psychiatric penitentiary on Serob 6. The Rebels were then attacked by cyborgs disguised as Maxeil's servants, but escaped in Maxeil's family starship, the Drogon.
The AI then ordered droids to attack every city on Karlatt. The revolt, similar to a recent one in the Elektra system, devastated Karlatt.
The agents later returned to the planet with Jimmor Ison, and infiltrated Temple Maudit in the far-eastern peninsula. Ison there sacrificed herself to destroy the AI with a computer virus.