COLOGNE, Germany -- Germany has picked Stasi drama "The Lives of Others" from first-time filmmaker Florian Henckel von Donnersmarck as the country's official entry for the 2007 foreign-language film Oscar.

"The Lives of Others," was the big winner at this year's German Film Awards, picking up seven Lolas, including best film and best acting nods for stars Ulrich Muehe and Ulrich Tukur.

It tells the story of a by-the-book Stasi agent (Muehe) assigned to spy on one of East Germany's most popular playwrights (Sebastian Koch). While listening to this lives of this free-spirited artist and his dissident friends, the agent begins to question the totalitarian system he has devoted his life to.

"This film vividly shows, not just a chapter in this history of divided Germany but the story of a man who, though observing the lives of others, regains his own life," the independent jury which picked "Lives" said in a statement Monday.

"The Lives of Others" was released in Germany in March by Buena Vista International, where it has earned €10.3 million ($13 million). The film screened at the Toronto and Telluride festival and Sony Pictures Classics has domestic distribution rights.

The nominations for the 2007 Oscars will be announced Jan. 23. The 79th Academy Awards will be presented Feb. 25.