1. You can get Pirate status by attacking players in hostile waters and sinking their ship.
2. Players can identify you as a pirate when your name is highlighted depending on the level of your notoriety from light orange to red.
3. Once you are a pirate, any player can attack you regardless of where you are even if you are not in hostile waters.
4. Players may take your gold and items just like beating up NPC pirates!
5. Only having a notoriety of over 1000 will label you as a pirate going below 1000 will normalize your status; notoriety being the skulls on the lower left of the image.
How do I remove it?!
1. Sail and sail a lot -- this is the only way to remove it for now; waiting at ports and in town will do nothing, it's measured by how far in a day you sail.
2. Premium item!!! It's not yet been implemented.