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Wiktionary
bind on pickup
  1. (context online gaming English) 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. v

  2. (context online gaming of a piece of equipment English) To become permanently associated with a player character upon being pick up.