G'day there, I hope this guide helps you in your decision to make the right possible choice when either purchasing or looking for a Genuine Harley Davidson 'Pegasus' Patch, as if you are hopefully you know what your looking for and at and if not here are a few tips.
I'm not trying to sell you one but these patches came out for sale in Australia around 23 years ago approximately 1984-5 ?
When released back then Harley-Davidson did not have a patent on everything they sold like they do now days and and I decided back then that I really loved this new design patch and purchased all I could get from the very few Authorized Harley-Davidson dealers in Australia at the time some being Peter Stevens - Motorcycles who only had one shop back then and sold there Harley's in Dandenong not in the city store, another place I purchased the 'pegasus' patches from was Harley-City in Brunswick, Victoria.

As H-D never had patent's on everything the only ever thing on the back of the 'Pegasus' patches or any other
Genuine Harley Davidson patches was a little oblong sticker which had the H-D 'Bar and Shield' Logo and read in black text 'Official Licensed product'  that's all, nothing else...
As I am not allowed to give links out in these guides one other Genuine H-D pegasus patch I found is at this website in the U.S. called Xpressmart. com.au who have one medium size for U.S.D.$350.00 or in today's rate A$ 524.05

 http://www.xpressmart.com/Merchant2/merchant.mvc?Session_ID=e9426efb3ec3a1858630742a2aad9beb&

As these are now a very sort after and a collectible item which don't seem to go down in value unless a person unknowingly puts one on a auction website for sale and doesn't know there true value do not come up for sale anywhere ever.
I can't remember exactly how many patches I was able to buy as now many have either been stolen on my jackets, or I outgrew my leather jacket or vest and gave them away, as stated back then I was only handing someone a used jacket which didn't fit me and the pegasus patch was just another run of the mill H-D patch at that time so never worried too much. I also now have them on a few of my H-D Jackets and displayed in my home and have offered a few for sale in my ebay store.

Please note the large 'Pegasus' patch is the more highly sort after and the medium sized one which is approx 6" inches square still makes the rounds on ebay occasionally. The smaller pegasus patch was approx 3" square and I have now ran out of that size and have not even got one myself.

Fake Harley-Davidson Pegasus Patches:
There are numerous fakes out there, some don't have the 'Harley-Davidson' orange name banner on the bottom of the patch.
Other great copies are made in Korea and some even come with a fake 'Bar & Shield' H-D licenced product sticker, very cunning!
Others have the 'H-D logo' multiple and numerous times imbedded under the plastic clear coat all over the back.

Now many pegasus patches do come for sale especially on the U.S. eBay website and ofcourse there are your many 'fake' ones which go up for grabs all the time. I myself would not buy a 'pegasus' patch of  seller who has one in auction for sale, only to sell it and then relists the same one again and over and over. 

A easy way to check this is to 'View the sellers feedback' and if you notice a lot of feedback being for patches and he only has one item listed, well it's buyer beware.

So basically if you want a H-D Pegasus patch and you are not that particular if it's a Genuine Harley Davidson Licensed product patch then a fake is probably what will do you, as these fakes are just as good and virtually with todays modern digital sewing machines probably just as good as a Real fair dinkum one but please do not pay a high price for it that sellers are asking.
Hope this guide helpful and if so please vote below,
Cheers Possum