Escalating its $1 billion March lawsuit against IBM, The SCO Group on Monday said it had terminated IBM's right to distribute its AIX Unix operating system and claimed that it was now entitled to a portion of IBM's total Unix revenue.

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In addition to the $1 billion in damages SCO is seeking for revenue lost to Linux, the Lindon, Utah company is now also seeking compensation from IBM for AIX-related hardware, services and software that it ships. "Starting Friday (June) the 13th and going forward, the IBM revenue stream that ties to AIX, we're going to make a claim on that revenue stream, based on the fact that they don't have an authorized version of AIX to ship," said SCO Chief Executive Officer Darl McBride in an interview.

"We have the contract rights to terminate their use of the software in the marketplace, or their ability to distribute their software in the marketplace," said McBride.

SCO sued IBM in March of this year, charging IBM with misappropriation of trade secrets, unfair competition and other illegal actions, alleging that IBM is trying to damage Unix to benefit its Linux business. The company had given IBM 100 days to come to an agreement, an ultimatum that ended last Friday.

IBM has denied any wrongdoing in the case and, on Monday, disputed SCO's right to revoke its AIX license. "SCO continues to make claims," said an IBM spokeswoman. "Our license is irrevocable. It's perpetual, and it cannot be terminated," she said.

Because it has terminated the AIX contract, SCO now claims that AIX users "don't have the right to use the software, and IBM doesn't have the right to distribute or sell the software," said McBride.

Though McBride seemed to say that AIX users no longer had the right to use AIX, he stopped short of saying that they might be targets in the lawsuit. "We're not commenting on what they should do directly. We're saying that this is between us and IBM," McBride said.