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Definition of Bind on pickup
1. Adjective. (online gaming) Describing an item that becomes bound to the player that loots it. The player cannot transfer it to another player; they may only sell it to an in-game vendor or discard it, destroying the item. Used mainly on quest MacGuffins and rare drops. Compare to bind on equip. ¹
2. Verb. (context: online gaming of a piece of equipment) To become permanently associated with a player character upon being picked up. ¹
¹ Source: wiktionary.com