This is a curiously detailed Knuckles patch. However, it isn't a picture of the real thing. This is actually an art-representation. The real patch will have fabric textures/embroidering etc. Do you have this? Send in a photo for credit! The background is tiny red checkers with line-art added for interest. The Knuckles art is the uncommon (yet well done) foreward facing stock, released after Sonic & Knuckles for the Genisis. His name is written in a fairly dynamic (and new) font, with a splash of white. With lots of detail, interesting elements, & non-over-used art this is a great patch for Knuckles fans to collect. It is being made by GE Entertainment in 2010. 

TODO: Confirm was this really released as a patch? I remember it as a poster.