What if Google would start ranking directlyrics on specific 'azlyrics' queries? I haven't seen it happen yet, but if it worked... expect it to be reverted next week.
So it's legally okay, as far as we know.
Still a dick move, though. It's not okay in my opinion. But I'm not the one who may gain or lose thousands of dollars by deciding whether or not to do it, either. I can't say for certain whether it would be okay or not from outside my comfy judgment armchair.
ETA: and now the site owner is on record here on HN stating that the intent was to steal search traffic. I'm sure this is a cutthroat business ... but this is an open invitation for one's own throat to be cut.
If the company hasn't registered it, and doesn't enforce it, it is not a trademark.
http://www.klemchuk.com/30-trademark-infringement-by-meta-ta...
'How I let other people create so I don't have to work'
But matter of fact is that Directlyrics hosts only around 10k. A decision made early on to focus on less pages compared to competitors that needed to rank 1M+ paghes.
The biggest revenue hit was the decline of ringtone revenue.