Explanation directly from the interwebs:
PuG
Pickup Group; used commonly in WoW and other MMORPGs. Basically means a group that isn’t formed by people you know; instead, it’s formed up of random, possible n oobs that will completely wreck whatever experience you are getting the group for.
Dude, that rogue totally ninja’d that blue BoE helm that dropped in BRD. This is why I hate PuGs!
Well, it would be logic, that if you are mercenary and work for one of three factions, that are at war with each other, you have the other two as enemies. It’s that simple. Why is this mercenary thing always taken as an excuse for lazy game design?
“Oh hi empire guys, i’m on the payroll of your enemies and fighting for them against you, but now don’t go shoot me, because i’m not your enemy, i’m a mercenary.” Doesn’t make much sense for an open World.
In skirmish, ok, becaus it’s just a lobby based pvp.
What makes us mercenaries free, is that we’ve got the choice to switch contracts and fight for another side the next day. A hired gun.
You could make it so, that every mercenary that has contracts of one faction active is a team and therefore share auras. Everything else is a enemy. Where is the problem?
This would mean, that every jericho Pilot will be an enemy free for all in the empire or federation sectors.
If mercenaries of the same faction attack others of their faction, they get criminal flag and therefore also become enemies of that faction.
Well, that whole idea would need three karma gauges though. One for each faction, but in the end, that would allow you to gain allegance with the fourth faction in invasion, the Pirats. (with time, they should allow docking in fort muerto)