It means that each time you hit an enemy it deals 30 damage each second for 3 seconds. It can stack up to 4 times on each target, which means that you can hit 2 enemies 4 times within the five seconds and you will deal 280 damage to each target.
The way I look at it, this item was built specifically for it's active. (because all of its stats are kind of meh) Add the cooldown of the active and I'll be able to rate the item better.
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Recipe:
Emblem of Valour - 800
Recipe cost: 400
Totalt cost: 2810
25 attack speed
10 critical strike
10 movement speed
15 attack damage
20 Life Steal
UNIQUE Aura: Nearby allied Champions gain 12 Health Regen per 5 sec.
UNIQUE Active: For 5 seconds the halberd is burning and each attack burns your enemy for 30 damage each second for 3 seconds. Stacks up to 4 times.
thoughts?