Source : Webster's Revised Unabridged Dictionary (1913)

Privilege \Priv"i*lege\, v. t. [imp. & p. p. {Privileged}; p.
   pr. & vb. n. {Privileging}.] [Cf. F. privil['e]gier.]
   1. To grant some particular right or exemption to; to invest
      with a peculiar right or immunity; to authorize; as, to
      privilege representatives from arrest.

            To privilege dishonor in thy name.    --Shak.

   2. To bring or put into a condition of privilege or exemption
      from evil or danger; to exempt; to deliver.

            He took this place for sanctuary, And it shall
            privilege him from your hands.        --Shak.

Privileged \Priv"i*leged\, a.
   Invested with a privilege; enjoying a peculiar right,
   advantage, or immunity.

   {Privileged communication}. (Law)
   (a) A communication which can not be disclosed without the
       consent of the party making it, -- such as those made by
       a client to his legal adviser, or by persons to their
       religious or medical advisers.
   (b) A communication which does not expose the party making it
       to indictment for libel, -- such as those made by persons
       communicating confidentially with a government, persons
       consulted confidentially as to the character of servants,
       etc.

   {Privileged debts} (Law), those to which a preference in
      payment is given out of the estate of a deceased person,
      or out of the estate of an insolvent. --Wharton.
      --Burrill.

   {Privileged witnesses} (Law) witnesses who are not obliged to
      testify as to certain things, as lawyers in relation to
      their dealings with their clients, and officers of state
      as to state secrets; also, by statute, clergymen and
      physicans are placed in the same category, so far as
      concerns information received by them professionally.

Source : WordNet®

privileged
     adj 1: blessed with privileges; "the privileged few" [ant: {underprivileged}]
     2: not subject to usual rules or penalties; "a privileged
        statement"
     3: confined to an exclusive group; "privy to inner knowledge";
        "inside information"; "privileged information" [syn: {inside},
         {inner}]