We already know that if you drop it someone else will steal it or return it to its rightful owner.
That's interesting. Is this confirmed? I thought if I dropped a stolen item on the ground the npcs will try to steal it or give it back to
me, not to the original owner.
If every random npc knows who is the rightful owner for every item in the game, that would be like every item has an invisible label of its owner. That would totally kill the stealing/selling fun. I hope they get rid of the stolen label from Oblivion and nobody knows whose apple is the one I'm trying to sell. For some rare pieces of armor, weapons, or jewelry, it makes sense to be recognizable if they are unique in looks, people would know hey, that's the guildmaster's staff you're trying to sell! But for common items not even the one you stole them from should be able to identify, because objects like apples usually look the same :shrug: