New York - Kids' software licensing is big business, and Humongous Entertainment, for one, is riding in on a floppy blue dog.

The Woodinville, Wash., publisher plans to deliver the first two titles based on Nickelodeon's hit preschool program "Blue's Clues" this fall. This is the first time Humongous, which has won numerous awards for original characters like Pajama Sam and Freddi Fish, has licensed content for its titles.

Across the interactive entertainment industry, software publishers are introducing products based on popular movies, television programs and toys in an effort to lure increasingly brand-aware young consumers.

"Licenses are very hot for kids' software. The only ones that compete are the established CD-ROM brands," said the interactive software buyer for one national chain. "They also appeal to the other 50 percent of non-computer users we're trying to get. It's a safe brand, and they have certain expectations of quality."

Brand-name software is a good way for publishers to claim consumers' attention-and market share-from established educational software franchises like Cendant...