No I understand it perfectly, again you do not. Being a pirate depended on whether you thought you was getting paid or not for work already done. If yes, Privateer and you went through the legal means. If no, and if penalties it would be piracy as you'd go where the money is. Sorry but this is exactly how many of the notorious pirates got started, because eventually their sovereign nation had to do something.

Privateers could and did frequently board allied or neutral nations vessels who were flying false flag for safety and could be held liable for damages.