>Is the idea that you're in international water so you can do what you want?

Pretty much as I understand it, but I don't think they're under the illusion that they don't have to maintain some sort of relationship with land-based nations.

>What stops a navy coming and confiscating your equipment then?

Nothing? Some form of diplomacy?

>They stop drug smugglers and pirates in international waters all the time. And you'll be static!

They never stop them all. I don't think I will be static. I'll be on the beach.