Blue Ensign British Navy Flag Woven Sew On Badge/Patch 8cm x 4.5cm 100% Polyester. 

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The Blue Ensign is a flag, one of several British Ensigns used by certain organisations or territories associated with the United Kingdom. It is used either plain, or defaced with a badge or other emblem

Prior to the reorganisation of the Royal Navy in 1864, the plain blue ensign had been the ensign of one of three squadrons of the Royal Navy, the Blue Squadron. This changed in 1864, when an order in council provided that the Red Ensign was allocated to merchantmen, the Blue Ensign was to be the flag of ships in public service or commanded by an officer in the Royal Naval Reserve, and the White Ensign was allocated to the Navy.

Thus, after 1864, the plain blue ensign (i.e., without any defacement or modification) is permitted to be worn, instead of the Red Ensign, by three categories of civilian vessel.

British merchant vessels whose officers and crew include a certain number of retired Royal Navy personnel or Royal Navy reservists, or are commanded by an officer of the Royal Naval Reserve in possession of a Government warrant. The number and rank of such crew members required has varied over the years, as have the additional conditions required, since the system was first introduced in 1864.

Royal Research Ships by warrant whether manned by former Royal Navy personnel or Merchant Navy personnel.

British-registered yachts belonging to members of the following yacht clubs:

Royal Albert Yacht Club

Royal Cinque Ports Yacht Club

Royal Cruising Yacht Club

Royal Dorset Yacht Club

Royal Engineer Yacht Club

Royal Gourock Yacht Club

Royal Highland Yacht Club

Royal Marine Sailing Club

Royal Motor Yacht Club

Royal Naval Club

Royal Naval Sailing Association

Royal Naval Volunteer Reserve Yacht Club

Royal Northern and Clyde Yacht Club

Royal Scottish Motor Yacht Club

Royal Solent Yacht Club

Royal Southern Yacht Club

Royal Temple Yacht Club

Royal Thames Yacht Club

Royal Welsh Yacht Club

Royal Western Yacht Club of England

Royal Western Yacht Club of Scotland

Sussex Motor Yacht Club

Royal Brighton Yacht Club, Australia

Royal Geelong Yacht Club, Australia

Royal Melbourne Yacht Club, Australia

Royal Perth Yacht Club of Western Australia, Australia

Royal Queensland Yacht Club, Australia

Royal South Australia Yacht Club, Australia

Royal Sydney Yacht Squadron, Australia

Royal Yacht Club of Tasmania, Australia

Royal Yacht Club of Victoria, Australia

Royal New Zealand Yacht Squadron, New Zealand

Royal Port Nicholas Yacht Club, New Zealand

Permission for yachts to wear the blue ensign (and other special yachting ensigns) was suspended during both World War I and World War II .

 Definition from Wikipedia