v_j is the jth patticle velocity in a frame (frame A) in which the center-of-mass velocity is V;
If frame A moves at velocity V' relative to another frame (frame B), then the jth particle velocity becomes v_j+V'in frame B, the center-of-mass velocity in frame B becomes V+V'.
The identity says that the total kinetic energy relative to the center-of-mass frame is independent of the reference frame.