I am looking to build and subsequently sell a IPTV box. The purchase price should be approximately $100.00. My business model will include a monthly subscription of less than $15.00 per month or $150.00 per year recurring every year to sell in my shop. If the customer does not pay then the subscription stops.
1.
Can we make a IPTV box from Raspberry Pi, with XBMC which fits my objective.
2.
Is something like this legal in USA and Canada
Another reference point is
http://iptvtalk.org/
So the question is, are you trying to make a IPTV "player" or an IPTV "server"? As a player, KODI (formally XBMC) is the best way to go, as you can easily put it on a Raspberry Pi using OpenElec for your application module. There a tons of "unofficial" KODI applications that already have IPTV streaming setup (beware, some are legal, some are not).
Most IPTV streaming is consistent with configuring XML files linking streaming sources to server content.
If you're trying to run a IPTV server, you'll need a lot more than a Raspberry Pi to get you started.