Born in the U.K.

Such is the blurring of the lines between the U.K. and U.S. toy and licensing markets that it is often difficult to discern the origin of many of the big properties that are hits in both countries. But you can sometimes spot a British license by its from-left-field quirkiness, or the fact that it's just eye-spinningly mad.

Case in point: Teletubbies. The flip side of this is that the properties that look like someone else's LSD flashback often turn out to be the ones with real legs. Doctor Who is another typical example (see sidebar). It has had a tremendous resurgence in the U.K. (from outmoded '70s camp with bad special effects) to become one of the coolest family shows. The property's toy line has propped up a U.K. industry suffering from withdrawal symptoms from the end of the Star Wars movie run.

Preschool is the big battleground in U.K. licensing at the moment, and it's in this hit-and-miss arena that U.K. concepts often strike gold. Teletubbies creator Ragdoll has a new show airing on the BBC called In the Night Garden. Like Teletubbies, it's a bit of a head-scratcher for anyone under the age of 3, but it has the same unique-looking characterization and environment that made its predecessor work. But wait awhile, because no one is queuing outside Hamley's for the product range yet, so it could be a slow-burner. [Editor's note: Under a multi-year, global deal, Hasbro has the rights for a wide range of toy categories to be marketed under its Playskool banner, with a rollout in the U.S. expected to begin in 2008.]

The company that produced Bob the Builder, Chapman Entertainment, has been enjoying similar levels of success in the girls market with Fifi and the Flowertots, a show about the adventures of a flower girl and her friends in their garden. In the boys market, Chapman is readying a new show called Roary the Racing Car.

Underground Ernie is another BBC show that has been enjoying good ratings, and the toy line is doing pretty well. Based on the adventures of a London Underground station master and a group of tube trains (including Victoria, Bakerloo, Hammersmith and City) there have been criticisms that it might just be a little too parochial, since London is the only city with an underground railway system in the U.K. My guess: it possesses enough of that British charm you Americans love. Meanwhile, Lazy Town, though it's Icelandic, not British, has continued to be a smash here in the U.K.

And lastly, former England football (or soccer, to you Yanks) captain David Beckham is moving to Los Angeles to play for LA Galaxy in August. Yes, football is still about as popular as cholera in the U.S., but do not underestimate the Beckham brand. He is hard to get away from in the U.K. and Europe—and if we can have kids over here wearing Michael Jordan gear when darts is more popular than basketball in the U.K., anything can happen. Brace yourselves.