Option Settings in Lightroom
Open Lightroom 4 and under Edit, Catalog Settings set the options to:

Export CyPics Attributes as Heirachical Keywords
CyPics attributes are exported as name|value which is treated by Lightroom as a
heirachy. See:
http://www.ronnynilsen.com/Essays/DigitalDarkroom/Keywords/.
Reorganising your keyword list in Lightroom to a consistent heirachy will give
you major benefits to the organisation of your collection.
Lightroom Image Metadata
Lightroom uses image metadata standards IPTC, XMP and to a lesser extent EXIF to
record its cataloguing information within the image as well as holding a copy
within its own database.
IPTC Standard Usage
IPTC (International Press Telecommunications Council) is a
newspaper standard which is why it does not fit properly with your photographs.
In the table that follows the IPTC usage restrictions for an attribute are shown
as 'String[0,64]+'.
'String' says it is a string
0 (the first number) is the minimum length of the string
64 (the second number) is the maximum length of the string
+ (optional) says it can be a repeated attribute
When an IPTC attribute (IPTC:...) is written values will be truncated to fit
within the standard length if required.
XMP Attributes
The IPTC metadata has specific rules which are enforced. The equivalent XMP
attributes that are alternatives to the IPTC attributes do not have the same
length restrictions. All XMP attributes are character strings.
When exporting cataloguing information to Lightroom use the XMP attributes for
maximum flexibility.
EXIF
EXIF is only used for date and time, the image rating (1 to 5 stars) and image
description.
Metadata Export for Lightroom Import of JPG Files
Lightroom maintains the metadata within the JPG file, it does not use XMP
sidecar files (same name with an .XMP extension). The settings in CyPics should
be:
£ Write XMP sidecar file only (leave original image untouched)
£
Write EXIF & IPTC
T
Write XMP
£
Create XMP sidecar files
All the required XMP fields should be checked and XMP attributes selected from
the table below.
Metadata Export for Lightroom Import of RAW Files
CyPics did not support RAW however if you wish to convert your master files to
RAW then this could be the ideal time. To do it you need the CyPics registered
folder to contain both the JPG and RAW files
with the same base name. You don't have to have a RAW file for each JPG.
Lightroom maintains the metadata of a RAW file within an XMP sidecar file.
Use the same options as above for CyPics
except for:
T Create XMP sidecar files
Before importing to Lightroom delete the duplicated JPG files and remove the
.XMP files where the only copy of an image was the JPG file.