Fiction Proper title in the Elite universe

So having played Elite: Dangerous for about a week now, I've been curious about something. When going to dock at a station, you are always scanned by any local authorities to determine whether or not you have carrying illegal goods or if you are wanted. Some of them refer to the player as 'Commander' when the player is in the clear, while others simply refer to the player as 'pilot'. Of course, your username in game for the online stuff as well as solo play is 'Commander (X)' and everything I have heard of from Elite has always referred to the main player character as 'Commander'.

Lore-wise, is Commander the official title for pilots who own and pilot their own ship? Is it a rank? If so, what rank does this pertain to, since the player Commander in question seems to be out for their own profit rather than enlisted in any kind of military force. Is the authority ship referring to the player as 'pilot' just a brusque or informal way of addressing the character in question?

I feel like I'm over-thinking all of this but I've been curious since I noticed this and I figured the official forum's section for lore-related questions and threads was the best place to ask.
 
It is a title - the same way everyone sailing a ship is (or at least used to be) called "captain", even if they are not part of a navy.
 
There's one school of thought that members of the Pilot's Federation carry the title "CMDR", yet non-members do not. That would be a nice explanation of why NPC's are listed just by name, whereas actual players have the title before their name. Perhaps NPC's don't own their ships, or perhaps they do but they're just not P-Fed union members. I don't know if this is "official", or merely just player speculation, but the explanation works for me, at least until Frontier puts out some clarification.

As a side-note, when docking at a station that you're Friendly with, they say "Greetings, Respected Commander". Adds a nice touch, being recognized.
 
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