A temporary injunction was issued against CD Cal on May 13 in the Central District Court of California to enjoin the unauthorized distribution of lyrics on websites. Plaintiffs include music publishers Warner/Chappell, Peermusic and Bug Music. Read more from The Trademark Blog here.
The New York Times has a great summary of ongoing "lyric" litigation. Music publishers/copyright owners own the exclusive right to reproduce or display lyrics. While having access to lyrics is often helpful to the fan who thinks Alan Jackson is singing "a pier of Miller cans" rather than "a pyramid of cans," posting the lyrics without authorization may actually constitute copyright infringement.