Apple Computer's legal team continues to pick holes in the argument fielded by Apple Corps in the landmark trademark case in the UK High Court.

Apple Corps is demanding that Apple Computer cease using an apple logo in connection with iTunes and the iPod, claiming such use is in breach of a 1991 usage agreement between the two companies.

Apple Computer counters that the agreement instead allowed Apple Computer to employ the mark in a wide field of use, including data transfer and transmission.

As a result of the $26.5 million 1991 settlement, both parties had agreed terms of use of the apple logo: "Apple Corps' field of use is very narrow indeed, being confined to creative works whose complete content is music," said Apple Computer courtroom representative, Lord Grabiner, QC, according to the BBC.

He also lamented the fact that The Beatles have so far not licensed their music to any existing online service, saying the surviving members of the band have "missed out" in the fight against piracy as a result.

Apple Corps' claims Apple Computer's music distribution business to be "flatly contradictory to the provisions of the agreement."

An Associated Press report reveals an amusing moment in the case last week when iPod user Judge Mann cut short Apple Computers' explanation of what iLife '06 does.

"ILife is not a complete novelty to me. I've got it and I use it," the judge said. Apple Computer's QC said that should the case go to a higher court, the judge there may not be as clued-in to such technology.

Judge Mann replied: "The higher up one goes, the less likely it is that anyone will know what we're talking about."

The hearing is expected to close this week. Macworld expects more information from the ongoing hearing today.