This Bionicle patch was a prize The LEGO® Group had made in 2006 as part of their marketing campaign for Bionicle in collaboration with The All-American Rejects band. In the campaign, The All-American Rejects band was captured by the Piraka when their yacht sailed too close to a mysterious island. Fans could go to www.freetheband.com and find clues to submit to win a sweepstakes where a very limited number of Bionicle merchandise prizes were awarded. Here is a link to the original 2006 commercials:

https://youtu.be/ehvNqOZE-HA?si=y4Jpl_evF88qusM-

It is about 2.75"x2.75", new and sealed.