Every IPTV system requires the use of a complex mix of intellectual property rights (IPRs). Ignoring the need to acquire licenses to these IPRs can lead to trouble.

At the CeBit trade show in Hannover in March of this year, German police raided the booths of 51 companies at the behest of Sisvel S.p.A. (www.sisvel.com), an Italian licensing company, which "has the right to grant licenses for the use of several patent families concerning the MPEG Audio Standard."

 and offenders were to be subjected to "investigative and criminal proceedings."

Because IPTV systems combine a number of media processing, compression and transmission technologies, IPTV is dependent on open and proprietary standards. Obtaining

licenses to the patents covering these standards, or ensuring that suppliers will do so, can be a significant challenge for purchasing agents.

Most MP3 devices require a license from Sisvel, who have a well-earned reputation for being exhaustive in their licensing of MP3 patents. Sisvel lists some 390 licensees on their website including SanDisk, against whom Sisvel initiated a similar seizure action at the IFA Expo in Berlin in 2006.

The Hannover Police Department advised all CeBit exhibitors of its "ZERO tolerance of protected rights at CEBIT 2008." Police reminded participants that it is "a criminal offence" in Germany "to infringe in protected rights at the exhibition" and warning that infringements in Germany are "punishable with prison sentences of up to five (5) years, or a fine."

As many as 180 German police and customs operators participated in the raid in which certain pieces of equipment containing MP3 technology were seized and removed from the floor. In addition, a number of booths were shut down

 If you are purchasingequipment or assemblies, you can take steps to protect yourself by including an indemnification clause in the sales agreement or on the back of purchase orders. The indemnification clause requires to vendor to pay any financial damages that result for the necessity of paying licensing fees.

Indemnification, however indelible, does not remove the responsibility for the purchaser to have or obtain the appropriate licenses in order to legally operate equipment. Indemnification only means that you can pursue the vendor for the recovery of financial losses.

Your best bet may be to take a proactive approach and determine what licenses you need and if your vendors have licensed the appropriate technologies for their products and services, or a good criminal defense attorney who speaks German.