Blackguard answers many questions about how the system will work here (minus duration of the buffs):
http://eqiiforums.station.sony.com/e...ssage.id=18132
Basically it counts days of activity on the account. So if you account was active for 2 months, then inactive for 3 months, then active again for 4 months you would be credited with 6 months of activity. Cancellations, expirations and account upgrades do not reset the counter.
Also you can claim these rewards on 3 characters within the same account. So 3 of your characters can sport the title if you've been around a year (like me
)