CANNES (Hollywood Reporter) - In a sign that cartoons are growing up, Sony Pictures Classics has acquired North American rights to "Persepolis," a coming-of-age story set in Iran.

Beginning with Ayatollah Khomeini's Islamic Revolution in 1979, the story follows its 9-year-old protagonist from her first private rebellions against the regime (mostly ABBA and Iron Maiden) through fleeing Tehran with her family and an attempt to start a new life in Europe.

Named after the ancient city near Shiraz, "Persepolis" is based on the book by Iranian cartoonist Marjane Satrapi, who is co-writing and co-directed the film with Vincent Paronnaund. The project is currently in production.

Although Sony is keen to point out that "Persepolis" has the potential to appeal to audiences of all ages, clearly this is not the kind of kiddie animation seen in "Over the Hedge" and "Ice Age: The Meltdown."

Indeed, if the Cannes Film Festival is anything to go by, animation is turning positively auteur. Both the festival's official line-up and the parallel market are packed with adult animation that is as challenging and disturbing as any of the live action on the Croisette.

The Directors' Fortnight sidebar opened with Anders Morgenthaler's "Princess," a gut-wrenching revenge fantasy set in the porn industry. Richard Linklater's Un Certain Regard entry "A Scanner Darkly," features the roto-scoping technique he used in "Walking Life" to adapt a bizarre short story by Philip K. Dick of paranoia, government surveillance and drug use.

And this year's Critics Week closes with another drug-drenched cartoon: the 3-D animated feature "Free Jimmy," from Norwegian underground comic artist Christopher Nielsen, about a group of lowlife circus performers and a doped-up elephant.

"There is a richness and thickening in the focus animation is taking," said Noah Cowan, director of programming for the Toronto International Film Festival. "The films here that have adult themes point to a larger trend."

Although this new wave of grown-up animation is breaking new ground in terms of approach and subject matter, the market for mature cartoons has been growing for several years.

Industry executives cite the success of films like the Oscar-nominated French-language "Les Triplettes de Belleville," which, while still G-rated, also drew an older demographic.

"Animation is going through a transition, it's trying to go in unconventional directions," said Michael Barker, co-president of Sony Pictures Classics. "'Triplettes' showed that there is quality animation outside of America with a sensibility different from mainstream America."

Another appealing aspect of art house animation, at least from outside America, is that unlike live action, cartoons can be dubbed for a U.S. audience more easily. Sony Classics will be creating an English-language version of "Persopolis," and "Jimmy" was shot in Norwegian and English, with the latter featuring a name cast that includes Woody Harrelson, Kyle MacLachlan, Jim Broadbent and Samantha Morton.

"The animation can be beautiful, but if the story isn't great, no one but the kids will watch it. I think that is the biggest challenge and the biggest obstacle to adult-oriented animation," he said. "In fact, I would say for this kind of animation to be successful, it has to be really good, even better than the live-action films out there."

(c) Reuters 2006. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

This is cache, read story here