Brown Dwarfs are sometimes referred to by scientists as
"failed stars" because even though they contain many of the
same elements as stars, they lack the mass needed to start the
nuclear fusion process that goes on inside a star.
news.discovery.com
They start out just like normal stars do, as a cloud of dust
and gas collapsing and being pulled together by gravity. The
difference with the Brown Dwarf is that they don't have the
mass to create a gravity with temperatures hot enough to to
start hydrogen fusion.
Brown Dwarfs were originally called Black Dwarfs but that is
now a term used to refer to a start in its final stage of
stellar evolution in which all of its heat has been radiated
away.
Since Brown dwarfs are so cool in temperature in comparison to
stars they can sometimes be mistaken for planets. Scientists
officially determine if a Brown Dwarf is actually a Brown
Dwarf and not a planet by whether or not is can fuse
deuterium which is an isotope of hydrogen that contains one
proton and one neutron in its nucleus.
Also, since they give off such little light they were not
able to be found until recently as technology has gotten more
advanced. Before the 1980's when the first Brown dwarf was
seen, astronomers could only speculate on their
existence.