Abstract: Label-forming and applying apparatus is provided which dispenses a web of label material presenting individual labels with respective boundaries, and individually cuts such labels using one or more laser beams. The laser unit is equipped with a controller having an electronic memory which stores information about the label boundaries, so that the laser unit can be precisely controlled in order to successively cut labels from the web. An applicator assembly is also provided which picks up the cut labels and transfers the labels to an application station where they are applied to respective articles.