- Early history

The Lego Group had a very humble beginning in the workshop of Ole Kirk Christiansen, a carpenter from Billund, Denmark. Christiansen began creating wooden toys in 1932; the company began calling itself "Lego" two years later in 1934. The company expanded to producing plastic toys in 1947. In 1949, Lego began producing the now-famous interlocking bricks, calling them "Automatic Binding Bricks". These bricks were based largely on the design of Kiddicraft Self-Locking Bricks, which were released in the UK in 1947. The first Lego bricks, manufactured from cellulose acetate, were developed in the spirit of traditional wooden blocks that could be stacked upon one another; however, these plastic bricks could be "locked" together. They had several round "studs" on top, and a hollow rectangular bottom. The blocks snapped together, but not so tightly that they could not be pulled apart.
The company name Lego was coined by Christiansen from the Danish phrase leg godt, which means "play well". The name could also be interpreted as "I put together" or "I assemble" in Latin, though this would be a somewhat forced application of the general sense "I collect; I gather; I learn"; the word is most used in the derived sense, "I read". The cognate Greek verb "λέγω" or "lego" also means "gather, pick up", but this can include constructing a stone wall.
The Lego Group's motto is "Only the best is good enough", translated from the Danish phrase, Det bedste er ikke for godt. This motto was created by Ole Kirk to encourage his employees never to skimp on quality, a value he believed in strongly. The motto is still used within the company today.
The use of plastic for toy manufacture was not highly regarded by retailers and consumers of the time. Many of the Lego Group's shipments were returned, following poor sales; it was thought that plastic toys could never replace wooden ones.
By 1954, Christiansen's son, Godtfred Kirk Christiansen, had become the junior managing director of the Lego Group. It was his conversation with an overseas buyer that struck the idea of a toy system. Godtfred saw the immense potential in Lego bricks to become a system for creative play, but the bricks still had some problems from a technical standpoint: their "locking" ability was limited, and they were not very versatile. It was not until 1958 that the modern-day brick design was developed, and it took another five years to find exactly the right material for it.