User blog comment:Emptylord/Season 3 - PBE Patch Notes/@comment-79.191.107.217-20121118220914/@comment-5490997-20121119100534

Item damage does apply spell vamp, but only if it's an item active. Sadly Lichbane is passive, so no spell vamp there and no life steal either as that doesn't apply to on-hit effects.

btw, I do think it's kinda sad it got nerfed, but I guess with the new mastery and malady they had to nerf something.