Karate is a clone of the arcade game Karate Champ. It is a 1 or 2 player game where one has to defeat their opponent using a wide variety of Karate moves... and some moves are worth more than others. From what I remember, just like the arcade, one had to memorize a bunch of joystick positions that had to be done while hitting the fire button to do all of the moves.
Of special historical note (and verified during CocoTalk's (now The Coco Nation show) interview with Dave Dies - there is code left over for a planned ability to play head to head over a serial cable or modem, but it was never completed.
Title: Karate
Author: Dave Dies
Publisher: Diecom Products
Released: Late 1985
Requires: Color Computer 1,2,3, 64K RAM, tape or disk, joystick.
Download KARATE.BIN. Type LOADM "KARATE" and then EXEC to run.