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I don't see how this is enforcable. Even if the American courts uphold this (unlikely, in my opinion) that doesn't guarantee that it will be upheld all over the world.
Quoting lyrics is like quoting anything else; so long as the source is credited and an individual doesn't try to represent the material as their own work, it falls under fair use.
This latest move by the labels is stupid, but essentially meaningless.
EDIT - also, I tend to use song lyrics that represent how I'm feeling in my signature. I wonder if that means that I'm depriving artists or money?
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I wake up in the morning more tired than before I slept
I get through cryin' and I'm sadder than before I wept
I get through thinkin' now, and the thoughts have left my head
I get through speakin' and I can't remember, not a word that I said
- Ben Harper, Show Me A Little Shame
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