This is a shout out to whom it may concern involved with game news.
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While the term "Privateer" was first documented in the 17th century, officially sanctioned Pirates have been around for centuries.
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Basic sea bound fortune seekers from various countries world wide some of whom hailed from countries in alliance with England, were employed by the King of England to assist in the plundering and destruction of Spanish colonies and later as a defense of Port Royal(Jamaica) when he decided that he wanted a taste of the American riches(mostly South, but North American also) Cortez had been so reknown for bringing to Spain. The reason "Privateer" was not documented until the 17th century is because England ruled the seas and were only entered into English(thus the account we know of today) history when England licensed them after firmly settling the disputes in the region and it's commerce could establish trade routes.
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Privateering allows a Pirate to become an agent of the goverment
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Actually, this is incorrect. An agent of the Crown (employed by the King of England for the instance we're experiencing in PotC) was simply anyone with a Letter of Mark. The root of "Privateer" is Private, meaning not affiliated with the crown. (Granted there was little seperation between crowns official business and the commerce of the time.. ...after the treaty with Spain was struck, the Buccaneer were again outlawed.
After many years of plundering, enemies of the Realm of England in the region had become slim to none. It was at this time that the inhabitants of Tortuga began to plunder English interests in the region, becoming allies of CIRCUMSTANCE to countries like France(who had a long history of discomfort with England weather treatied or not at the time) ultimately having their status revoked, where they themselves became enemies of England. Morgan was a Welsh(one of the Brittish Isles) Privateer, who became a Buccaneer, and was later absolved and appointed Deputy Governer of the island. Drake and Morgan are both kindly remember and knighted because natural leadership and service to their crown.
All in all a good account of history with the exception of the definition of Privateer. Privateers were simply entrepreneurs. An agent of the crown who could draw on the resources of and protection of the crown was simply anyone with a Letter of Mark. I didn't know if you were going for a factual account of history or if you were modifying history to develop unique lore for PotC online. But, there's the facts fer ya.