In my department (well kind of, I'll start in a couple of weeks) in some of the lecturers don't have PhD, but it's a Department of Music and therefore not strictly an academic subject i.e. if you could have Stravinsky as a lecturer of composition who would bother if he has a PhD or not. In more accademical areas like historical musicology, music theory... most people tend to have PhDs.
As MistaG says in America professor is a general term for lecturer meaning anyone who lectures in a university can call themselves a professor, whether they have a PhD or not.
In Britain the title Professor is only used by senior academics that have been promoted to the position of Professor after a long career of research. However, there is no reason why someone who has produced enough research of high quality can be promoted to Professor without a PhD (although this is very rare).
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