Dear Rich: I have a question. I sell karaoke machines. Do I have to pay a separate fee to display the lyrics? Or does the fee I paid for the music cover the lyrics, too? I'm so glad you asked. Yes, you will have to get a separate license for the lyrics even if you paid the compulsory license fee for the music. That's because the display of the lyrics on the screen (in conjunction with the music) is considered an audiovisual work and requires a separate permission. That's the word from the Ninth Circuit in Leadsinger, Inc. v BMG Music Publishing (.pdf) (which harmonized California courts with New York karaoke case law). In Leadsinger, the karaoke company argued that displaying the lyrics was a fair use (claiming it taught users how to sing), but that argument didn't fly with the judges who must have been watching this.
And, to find out how you can license copyrighted materials like this, see the latest edition of my book Getting Permission: How to License & Clear Copyrighted Materials Online & Off (Nolo).
