[Tonguetyed]

Originally Posted by endzone

Updates On the Main Site
Taken directly from the newest Q and A

From Johanna:
Are player ships allowed to sink other player ships outside of the PVP playing mode? There are people near Cuba (switching seas) that sink anyone outside their guild. In other games, you can't be sunk unless you go over certain boundaries or reach a certain level - this allows more fair play. Is this how it will be in Pirates Online?
We've received a number of questions similar to this one - so we figured it must be a hot one! If players mutually decide they want to fight each other, they can use the game's Lookout System to get matched up for player vs. player combat and blast away all they like. Otherwise, players will NOT be able to damage each other's ships (through any means, including ramming and cannons) when in the open game world (non-PVP areas).

More info updated there as well, check it out.
Have to admit though, did a little pirate jig when I saw that they have fixed the sinking ships issue. Karma is king!

Also major update video in the video devs diary!!!!!!!!

I think many pirates will be relieved now. Honestly, the Cuban Gang was getting way out of hand and dealing with them took a lot away from my overall POTCO experience. I like the "ramming" ability, but it should only be used against NPC's and in PVP arenas. I wonder what the Cuban Gang will do now that they don't have the means to hog Cuba. Maybe actually play the game the way it's meant to be played!?