Selling hardware bundled with XBMC?
OpenELEC, absolutely. It sounds scary at first for the nontechnical user, but its so hands-off to set up and run, it's magical. I've _never_ had an issue with an OpenELEC install, while I've had many random troubleshooting sessions with regular Linux and Windows installs.

If you just want the system to be a media center and nothing else, OpenELEC is the tool for the job.
after having shown my custom-build HW + XBMC to friends and a couple of Shops ('Audiophile-Stereos') I would like to make a business out of it.
It will be based in EU. HW certifications like CE, ROHS, etc are feasible but a distributor warned me against issues related to Licenses and Patents.
If I install XBMC (complying to its rules, i.e. as GPL, etc - I've got no problem with that) and XBMC supports MPEG-(1,2...), H.263, Blu-ray, DVD playback, etc will I have to pay 3rd party licenses?
e.g.: for mp3 (seems 10.000$)
VC-1 patents + MPEGs: ($$$$?)

or will it be license-free since the sw I include/bundle (XBMC + my scripts, customizations, etc) will be delivered at no cost (open source) ?
OS will be Windows. I asked WMLA dept. (Windows Media License agree.) but they won't cover MP3 and others.
How does XBMC itself manage this issue?
Sorry to bother you but if I don't solve this issue I won't be able to start....

Seriously you should consult your lawyer.
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To be honest, I don't think any of us know or could give you reliable advice. I know that if you use hardware decoding of video or audio, or use passthrough audio, then you might not need to worry, since the software isn't technically "touching" anything that may or may not be patented, but even that might be different depending on the hardware, the OS, and even your local laws. If you are software decoding, then you might want to read this, as we use FFmpeg for all the software decoding: (where it says "Patent Mini-FAQ")

tl;dr- what nickr said.
Ditto everyone else. At best we're mildly knowledgable about US patent law. I have no idea what EU patent law is like, and I think that's what matters for you.
Just a little side note,
You say it will run on Windows.
Keep in mind that you need extra license for the use of Windows,
What would make the device more expensive then needed.
You can't use a cracked code if you're going to sell it

But like said before get some legal information to be sure.
LibreElec Kodi | Aeon MQ ?
Yeah I don't envy a one man band selling and supporting a windows xbmc appliance.

Isn't that why they make openelec?
If I have helped you or increased your knowledge, click the 'thumbs up' button to give thanks :) (People with less than 20 posts won't see the "thumbs up" button.)
Thanks very much for quick replies.
I checked - very useful - but depressing Sad
"Q: Is it perfectly alright to incorporate the whole FFmpeg core into my own commercial product?
A: You might have a problem here. There have been cases where companies have used FFmpeg in their products. These companies found out that once you start trying to make money from patented technologies, the owners of the patents will come after their licensing fees. Notably, MPEG LA is vigilant and diligent about collecting for MPEG-related technologies. "

If this applies also to mp3, etc it seems to me that there's no way (unless you're going to invest 10-thousands of $) to (legally) start a business...
Anyway: I'll check a Lawyer and the involved companies...

By the way: how does XBMC or FFmpeg manage this problem? Does it apply only to products making money out of patented technologies?
In this case someone might sell the HW and give the SW for free...Wink

P.S. Windows will be licensed

EDIT: I consulted MPegLA (MPeg Video...), Sisvel (MPeg Audio...), WMLA (Windows) and Motherboard-supplier for HW related patents. It took a while but all were very kind and helpful and it was possible to find an agreement. Something is still missing (Dolby, etc) but it seems to be feasible....
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