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Violent Brazilian film The Elite Squad (Tropa De Elite) won the top prize at the Berlin Film Festival in what is likely to be a controversial decision.
The movie, already a hit in Brazil, portrays corruption and violence in a crack Rio anti-drug police squad.
Best actor went to Iran's Reza Naji in The Song of Sparrows, and Britain's Sally Hawkins was named best actress for Happy-Go-Lucky. Paul Thomas Anderson of the US won best director for There Will Be Blood.