MMO, it is loosely based of the single player franchise. Look Online Elders, and we have Skyrim. There is lego star wars, and clone wars. The point is the title available for development, under another publisher.
But it's not available though. They are using the KOTOR universe for TOR. It's all there. It would not make sense for anyone to have TWO different series based in the same universe with the same back story. The customer base would be split. It is in Bioware's best interest to hold onto KOTOR since they're using it in TOR, and maybe they will make another single player game down the road, but that's for them to decide.
Besides you're so worried about Mass Effect, but I'm pretty certain they've said they have no intention to continue the series. Mass Effect is done. Forever. Therefore should they decide they want to do another Star Wars game, rest assured they'll have plenty of people to focus on it.