In Earth literature, Pinocchio was a woodenpuppet who longed to become a real boy.
In 2364, William T. Riker referred to Data as "Pinocchio" upon learning of Data's desire to be Human. (TNG: "Encounter at Farpoint") He recalled this moment while infected with Surata IV microbes. (TNG: "Shades of Gray")
When forced to argue the case that Data was only a machine in 2365, Riker referenced the name again to demonstrate that Data was not a living Human being, and having deactivated him said, "Pinocchio is broken. Its strings have been cut". (TNG: "The Measure Of A Man")