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Yahoo music has teamed up with Gracenotes to offer the worlds first and largest “legal” database of music lyrics. The database contains lyrics of music from all five major music publishers. Gracenote has been working for sometime with the music majors to aggregate the rights to song lyrics. The lyrics have been provided to Yahoo free of cost in exchange for a revenue cut from ads shown on the site.

Yahoo Music has also added a new feature called Lyric Search, which enables users to search for music by punching in the lyrics. This is the third entertainment related announcement of the day, with Amazon planning to launch its own tunes, and Viacom agreeing to take measures to protect fair use being the other two.

The press release for the announcement is here and the post on Yahoo Music blog by Ian Rogers VP Product Development at Yahoo is here.