SCO Group, which claims ownership over parts of Linux, is suing distributors and users of the software system in what has become a highly contentious legal battle among technology makers, and technology lawyers said each licensee SCO signs helps bolster its case.

One of the world's largest software sellers, Computer Associates has championed an industry coalition supporting the open and free use of Linux.

While Computer Associates confirmed it agreed to license the software last August, it took pains on Monday to distance itself from SCO, saying it had signed the licenses as part of a confidential legal settlement with a third party.

"(SCO) is grasping at straws to purport CA as a SCO supporter," Computer Associates said in a statement. "CA stands in stark disagreement with SCO's tactics, which are intended to intimidate and threaten customers."

Legal and industry analysts have denounced the licensing offer from SCO as a tactic to generate revenue from intellectual-property claims that are in serious dispute. The subsequent lawsuits and licenses revolve around a central contract and copyright case SCO brought against IBM last year. Nevertheless, Utah-based SCO -- derided by the open-source community -- has managed to sell the license to at least a few companies, with Houston-based hosting company EV1 Servers.Net being the first. SCO said it plans to keep selling the licenses.

SCO has used the courts aggressively to assert ownership positions in Linux as well as software called Unix, whose code, SCO maintains, was utilized in the making of Linux.

The SCO Group last week expanded its legal battle over Linux by suing AutoZone and DaimlerChrysler.

Intellectual property, or IP, experts said CA's license could help convince a jury that SCO has a justified claim on Linux.

"Generally, if an IP holder is able to demonstrate that others in the industry have taken a license, thereby respecting the IP holder's claims, that can be used as evidence that is persuasive to a jury," said Brian Ferguson, a partner in a Washington, D.C. law firm that handles IP cases. Ferguson has no stake in the SCO case.

Lindon, Utah-based SCO said at least four companies, including CA, have received the license to use Linux.

Microsoft and Sun Microsystems, which are competing fiercely for market share in selling computer server operating systems, have license deals with SCO to use Unix.

SCO claims that parts of Unix were utilized in Linux illegally, infringing on SCO's trade secrets and copyrights. SCO sued IBM a year ago for billions, saying it had illegally transferred SCO's intellectual property into Linux.

Computer Associates said its license for Linux is part of a legal settlement with Canopy Group, SCO's major shareholder. In August, Computer Associates signed the SCO license and paid $40 million to Canopy Group to settle breach-of-contract charges, but news of that deal surfaced only recently on Web sites.