Ok, this illustrates the need to read the rules. Pirates can cause as much damage, short of death, as they wish before demanding cargo or tribute. If refused, the trader can be sent to the Void.
@Tortured- basicly you make sure you have all factions below 80% or less green, perferably less. Make sure no faction is blinking in your rep-window which illustrates the tag you display on other player's HUD. However, doing this entails constant monitoring due to NPC killing influences your rep and may cause one faction to move up in the ranks.
In essence, all that will be displayed is your name like a newbie