Technology giant Apple has mounted a legal challenge against retailer Woolworths over its corporate logo claiming it is too similar to its own trademark.

Woolworths launched the new logo in Australia in August last year and began rolling it out across its New Zealand business, Progressive Enterprises, last month as part of a rebranding exercise that will convert all Foodtown and Woolworths stores to Countdowns.

Woolworths says the stylised "W" is designed to be similar to peeled fruit to represent fresh food. But Apple wants IP Australia, the agency that governs trademarks, to reject Woolworths' application.

According to the Sydney Morning Herald, Apple is worried because Woolworths has applied for a blanket trademark that would allow it to use its branding and logo on anything. That includes a wide class for electrical goods and technology, putting it in direct competition with Apple should the retailer choose to brand computers, music players or other devices.

Woolworths has gone into credit cards and mobile phones, so the likelihood of it going into computers is not too remote.

Woolworths said it was not considering it at the moment.