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Taken from Lego.com
The LEGO history began in 1932 in Denmark, when Ole Kirk Christansen founded a small factory for wooden toys in the unknown town of Billund in the south of the country. To find a name for his company he organized a competition among his employees. As fate would have it however, he himself came up with the best name: LEGO – a fusion of the Danish words “LEg” and “GOdt” (“play well”).

Barely 15 years later Christiansen discovered plastic as the ideal material for toy production, and bought the first injection moulding machine in Denmark. His courage, input and investment paid off: in 1949 he developed the LEGO brick prototype, which continues to excite countless children and adults to this very day. Over the years he perfected the brick, which is still the basis of the entire LEGO game and building system today. Of course there have been small adjustments in shape, colour and design from time to time, but today’s LEGO bricks still fit bricks from 1958.
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