Indictment
Indictment is what happens after a player invades and kills you.
Once you are dead if you're holding the Indictment item, you'll see a prompt saying
"Indict Player? Yes/No"
If you choose yes the player will be added to The Book of The Guilty and can be invaded by Blade of the Darkmoon covenant members.
If you are indicted by a player you have two options:
Speak to Oswald of Carim and ask for Absolution (it costs your SL X 500 as of patch 1.5)
or be invaded and killed by a blade of the darkmoon. These phantoms will be blue instead of the usual red and the warning message will read
Invaded by Spirit of Vengeance -invading players name here-