To achieve the full multiplexing gain of a $K$-multiuser multiple-input–multiple-output (MIMO) overlay cognitive radio (CR) network, a distributed opportunistic interference alignment (DOIA) technique using a new beamforming algorithm, namely, threshold-based beamforming (TBF), is proposed. The MIMO overlay CR system consists of one primary user (PU) and $K$ secondary users (SUs) where the local channel state information is available at both the transmitters and receivers of SUs. Assuming that the receiver and the transmitter of the PU have perfect knowledge of their own channel matrix, the PU uses a maximum eigenmode beamforming (MEB) scheme for its data transmission to release some of its eigenmodes for the SUs. For this virtual cooperation, the SUs align their transmitted signals to the spatial directions (SDs) associated with the unused PU's eigenmodes to ensure orthogonality between the links of the PU and the SUs. In addition, the MEB scheme overcomes the limitation of the conventional water-filling power allocation (WPA) in releasing the PU's eigenmodes for the SUs at high signal-to-noise ratios (SNRs). A noniterative and distributed power-allocation strategy, namely, TBF, is proposed, in which the SUs' links with a maximum eigenvalue above a certain threshold transmit data at full power, and the rest remain silent. This protocol, along with the MEB scheme, enables the MIMO overlay CR system to enhance the throughput of the network described as the average sum rate of both the PU and SUs. The proposed DOIA-TBF protocol allows the opportunistic SUs to use the same frequency band of a preexisting PU and guarantees that no interference is imposed on the PU's performance for such a MIMO overlay CR system.