I was reading under the description for command word activation of a magical item and it seems to suggest that merely saying the command word would activate the item.
A command word can be a real word, but when this is the case, the holder of the item runs the risk of activating the item accidentally by speaking the word in normal conversation. More often, the command word is some seemingly nonsensical word, or a word or phrase from an ancient language no longer in common use. Activating a command word magic item is a standard action and does not provoke attacks of pportunity.
I could find anywhere in the command word description that the item needed to be held.
If the command word needs only be uttered in the presence of the item then this could open up possibilities.
Imagine having an item that has a once a day charge with the command phrase "It's a Bomb!" and the item is made to look like a bomb, but when the command word is uttered it unleashes a high level fireball or cloudkill spell.
Or, setting up a fireball wand at one end of a room, then using speaking as a free action to unleash a fireball as a free action once per round, while casting a spell of your own. Not sure if it has to be on your person though. I know, spellotape it to your hat!
Doesn't say if you have to hold the item as far as i can tell so ask a GM before hand or if your GM think about what the player in question is likely to do with it.
However it does take a standard action that doesnt provoke to activate it so you dont have to worry about them being used as a way to get off 5 extra spells a round or anything.
I would assume it has to be carried on the activators person at least or anyone could cause it to go off if they knew the word.
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Or, setting up a fireball wand at one end of a room, then using speaking as a free action to unleash a fireball as a free action once per round, while casting a spell of your own. Not sure if it has to be on your person though. I know, spellotape it to your hat!
It's a standard action to use a command word. The item can activate in response to normal conversation because you don't normally spend a standard action each round while conversing.
There is no rule that says they have to be held but, most items with command words have to be worn or wielded in some way to be effective.