in 1998, the israeli company mirage innovations was founded by yair david and yariv ben-yehuda. in 2001, the company r&d team transferred multicolor still images by diffractive planar optics and developed monocular displays. in february 2001 the company started negotiating with nokia to develop the technology for use in nokia's mobile phones and other mobile devices, but in september 2003 nokia broke off the discussions. in september 2007, mirage discovered that nokia had filed three patent applications with the u.s. patent and trademark office for technology that mirage developed by itself or helped nokia develop. the company tried to settle the matter but nokia responded by accusing the company of infringement. following nokia's threat, mirage was unable to secure key financing and was shut down in early 2008.