Yahoo China has been ordered to delete links to free websites offering music-downloads and to pay about 200,000 yuan ($27,200) for aiding the distribution of unlicensed songs by other sites, Reuters (via Xinhua news agency) reported. But, the Chinese court added that the company was not specifically responsible for copyright infringement because all the music was downloaded from servers of third-party sites. Back in January, several record labels, including Warner Music Group, sued Yahoo China, alleging it was facilitating copyright violations involving more than 200 unlicensed songs. The labels sought damages of 5.5 million yuan (about $710,000).

In other Yahoo music news, the AP reports that Yahoo has signed a deal with music information database Gracenote to provide a new free lyrics service. Yahoo will expand its online music section to include the lyrics of 400K songs. It hopes that users will want a more reliable alternative to sites that publish the words without the permission of the copyright owners and in many cases tend to be bogged down with pop-up ads and spyware. Almost 100 music publishers have agreed to provide song lyrics, including BMG Music Publishing, EMI Music Publishing, Sony/ATV Music Publishing, Universal Music Publishing Group and Warner/Chappell Music. Yahoo will share with copyright holders the revenue from the ads that will be displayed alongside the lyrics.