Dictionaries
Ace Novelty
Japanese Wholesale Patch Supplier. Ace Novelty was a source of military patches located in Tokyo, Japan. Patches made by Ace Novelty were easily identified with a brown or blue tag imprinted with "Ace Novelty, Box 1374, Tokyo Japan" placed on the back of the patch. From the late 1950s to the 1970s, Ace Novelty patches were individually packaged in cellophane with a calendar which could be used to narrow down the year of manufacture. Ace Novelty actually contracted out production of patches to other local companies, leading to a wide variety of manufacturing styles and/or types. Early Ace Novelty patches were typically hand or sewing-machine made; patches made after the mid-1980s were computer embroidered. Because of the ability to produce small quantities, as well as their low prices, Ace Novelty became a popular manufacturer of military patches, not only for the U.S. Air Force, but the U.S. Navy as well. These same attributes also made Ace Novelty a source for patch reproductions. Ace Novelty patches remain highly sought after in collecting circles and patches from the 1950s and 60s have been known to fetch prices in the hundreds to thousands of dollars.
Cut Edge. Also Flat Edge, Schiffli Edge
Type of border that is sewn on a patch then cut to shape, thus making the base material visible outside the sewn border. Cuts are most commonly made by a die, hand, a hot-edge knife or in recent times, a laser. This type of border was extremely common on patches prior to the wide-spread adoption of the merrowed edge in the 1960s. Most irregular shaped patches use a cut edge to prevent the fraying associated with a merrowed edge.

Fakes. Also Eye-Candy, Fantasy Patch, Novelty Patch
Fakes are patches that were never issued or used by a unit/organization. Unlike a reproduction, in which a copy of an existing patch is produce, a fake is based off an original design or artwork/decals that were never made into patches by the unit/organization, hence the alternate term "fantasy patch". In patch collecting fakes carry little to no value.
Reproduction
Also Knock-Offs, Repro, Replicas. An exact or close imitation of an authentic patch. Patches considered reproductions were never ordered, used and/or authorized by the unit/organization owning the design. Instead, they are produced by individuals to fill holes in collections or businesses for the resale market. In patch collecting, fakes carry no resale value. Reunion patches and heritage patches are specific types of reproductions that are considered "authorized" reproductions and thus are not typically grouped in the reproductions category. Some collectors view any patch beyond the first one produced as a reproduction, but this generally represents a minority opinion since most patches are intended to be produced in some quantity. While there is disagreement among collectors for and against reproduction of patches, there is widespread agreement that the larger issue is that individuals and companies not deliberately misrepresent or mislead consumers on reproductions.
Reunion Patch
Also Reunion Piece. A type of reproduction ordered by individual veterans or unit alumni which features an emblem of their respective unit/organization. Reunion patches are made because original patches are cost prohibitive and often difficult, if not impossible, to locate. While reproductions, many collectors group these patches separately since they are ordered by former members of a unit/organization. Reunion patches can usually be easily identified from the original by the style of embroidery. For pricing purposes however, reunion patches are treated as reproductions.
Swiss Embroidery. Also Schiffli Embroidery
Style of embroidery involving a paper tape, punched like the roll for a player piano, that is mechanically "read" by a machine that directs hundreds of needles on a loom simultaneously. The process begins with a sketch of the patch, enlarged to six times the size of the finished product, with every other stitch actually drawn in by hand. The operator traces every indicated stitch line with a metal stylus, creating a paper template for the loom. During the sewing, a different color of thread is used on each "pass" and this, in effect, layers one color on top of another, creating a bas-relief effect, as opposed to the uniformly flat surface of a Multi-Head patch. Two or three layers is fairly common, but attempting to penetrate too many layers tends to break needles, so rarely are more than four or five observed. The perception of depth from the raised layers of color, and the effects of highlighting and shadowing that occurred naturally when light hits the patch from various angles, tends to make some of these patches with more elaborate designs true works of art. This type of patch embroidery had its genesis in Switzerland, hence the term "Swiss embroidery," but the process was imported into the United States and was firmly established in the northern New Jersey area by the outbreak of World War II. Swiss embroidered emblems are often referred to as Schiffli patches because they are made on Schiffli looms. These looms use a shuttle that resembles the shape of a sailboat's hull, and "Schiffli" means "little boat" in the Swiss dialect of the German language.

Tiger Embroidery
Okinawan Patch Manufacturer. Embroidery shop located outside Kadena Air Base in Okinawa City, Okinawa, Japan. Opened by Sachiko Asato in 1964, Tiger Embroidery is a popular manufacturer of patches for units located at and on temporary duty (TDY) to Kadena. Originally, Tiger Embroidery patches were hand or sewing-machine made, but since the 1990s, Tiger Embroidery has made use of computer embroidery. Early Tiger Embroidery patches are typical sought-after by collectors, but in recent years, current patches have become widely available on eBay. Tiger Embroidery patches can typically be identified by their distinct embroidery style.Tiger patch remake a lot of the patches that they have made in the past. ABQMETAL is an ebay seller who buys a lot of her patches from Tigers. Many of these reproductions have missing words or are mis-spelt.
Source : http://www.usafpatches.com, http://www.pbase.com/usnavypatchman/root