Apple Takes First Bite of Brand Licensing

Apple Computer Inc. for the first time licensed its well-known brand name Monday, allowing fast-growing Toy Biz Inc. to use Apple for Kids on its own products.

In another first for the company, Apple suspended payment of its quarterly dividend because of the computer maker’s weakened financial state, according to a filing with the Securities and Exchange Commission. The last quarterly dividend of 12 cents a share was paid on Dec. 15. Apple has paid dividends continuously since 1985.

Under terms of the deal with Toy Biz, Apple said the New York-based company will develop, manufacture and distribute a new line of mass-market electronic learning aids and other learning toys and products bearing the Apple logo.

Cupertino, Calif.-based Apple said the announcement marks the company’s entrance into corporate brand licensing.

Besides video game sales, electronic learning aids are pegged as a primary growth area in the $18.7-billion toy industry, according to Toy Industry Fact Book.

Toy Biz said its Apple for Kids products will be designed to give preschoolers (ages 2-6) the experience of using toys that look like Apple computers, although the products will contain no actual Apple technology.

The company said its new Apple for Kids electronic learning products will be educational and easy to use, so preschoolers can learn from their play experience.

In Monday’s SEC filing, Apple said it expects to take further restructuring charges in the second quarter to cover costs of reorganizing the business. That reorganization may include farming out some of its manufacturing operations to other companies, the firm said.

Apple stock closed up 62.5 cents at $28.375 on Nasdaq. Toy Biz ended up 25 cents at $23.875 on the New York Stock Exchange.