Abstract: A system for forming discrete etched adhesive labels from continuous label stock comprises a de-laminator, a laser etching module, a re-laminator and a cutting module. The de-laminator separates and displaces the release liner from the face stock. The laser etching module scans a high power density laser beam over the separated face stock to produce a predetermined pattern of etched regions. The etched face stock is then re-attached to the functionally intact release liner by the re-laminator. Finally, the cutting module cuts through the face stock at regular intervals to form discrete adhesive labels.