Posted this elsewhere --------
I typically do not like PvP. Not my cup of tea and find it a nuisance. That said, I believe this game is made better by its inclusion and lack of interference.
What I would do with PvP is try to add a Bounty Hunter's Guild which will monitor the notoriety of a given pirate and offer rewards for capture.
The way I see this working is that as a player engages in PvP, their notoriety is increased. As this notoriety goes up, the Bounty Hunter's Guild will offer increased rewards for tracking down and ending the life of a bloodthirsty pirate.
This, creates incentives for player's to hunt down the pirate which is a win-win for players that love PvP. They will get more players trying to hunt them down - which will increase the amount of PvP they are involved in.
The Notoriety rating would be permanent to the player/crew in that it does not refresh on log out and does not decrease over time. The only way to reduce the level is to pay off the Bounty Hunter Guild. Dying will reduce the wanted level marginally for short periods of time, but the only way to permanently remove the bounty is by paying off the guild.
This means the downside to PvP is that if a player wishes to reset their rating, they must bribe the Bounty Hunter's Guild themselves to end the bounty. Going on wanton killing sprees can have a lasting effect on the pirate.
The Bounty Hunter's Guild will give information on pirates on the server with high piracy ratings and rumors on their general whereabouts. (ie. "It has been said that Black Bart is sailing near Mermaid's Cove.")
Additionally, the other aspect that I would add are FLAGS.
Flags would be this game's equivalent to flying your country's flag. They would give us a way to identify other players on the ocean and what they may be up to.
For instance, if you are on a Merchant Guild quest - your flag would be the Merchant Flag. As you progress in Merchant Rank, the Merchant Flag would indicate your rank.
Zooming in on the flag with a spyglass would give other crews an idea of what they are up against. It would always show the ship's notoriety rating as well.
The other aspect for flags would be that no pirate can engage another without hoisting the BLACK FLAG (whether on land or sea). Their vessel will need to have the black up in order to engage in PvP - except in retaliation or if they have an active bounty for the player. The black flag will help the system identify which player is the aggressor in any engagement - and thus which player will receive the notoriety points.
If both players have the black hoisted - then neither player receives notoriety.
Obviously it would need to be fleshed out more - but that's what I would do to make PvP have meaning and allow other "less PvP" type players know who they may want to avoid.