In return for agreeing to record "My Way", Vicious had demanded that McLaren sign a sheet of paper declaring that he was no longer Vicious's manager. In August, Vicious, back in London, delivered his final performances as a nominal Sex Pistol: recording and filming cover versions of two Eddie Cochran songs. The bassist's return to New York in September put an end to McLaren's dreaming.
After the break-up
After leaving the Pistols, Johnny Rotten reverted to his birth name of Lydon, and formed Public Image Ltd. (PiL) with former Clash member Keith Levene and school friend Jah Wobble. The band went on to score a UK Top Ten hit with their debut single, 1978's "Public Image". Lydon initiated legal proceedings against McLaren and the Sex Pistols' management company, Glitterbest, which McLaren controlled. Among the claims were non-payment of royalties, improper usage of the title "Johnny Rotten", unfair contractual obligations, and damages for "all the criminal activities that took place". In 1979, PiL recorded the post-punk classic Metal Box. Lydon performed with the band through 1992, as well as engaging in other projects such as Time Zone with Afrika Bambaataa and Bill Laswell.
Vicious, relocated in New York, began performing as a solo artist, with Nancy Spungen acting as his manager. He recorded a live album, backed by "The Idols" featuring Arthur Kane and Jerry Nolan of the New York Dolls—Sid Sings was released in 1979. On 12 October 1978, Spungen was found dead in the Hotel Chelsea room she was sharing with Vicious, with a stab wound to her stomach and dressed only in her underwear. Police recovered drug paraphernalia from the scene and Vicious was arrested and charged with her murder. In an interview at the time, McLaren said, "I can't believe he was involved in such a thing. Sid was set to marry Nancy in New York. He was very close to her and had quite a passionate affair with her."
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