LATEST: The producers of director Atom Egoyan's controversial new film WHERE THE TRUTH LIES have lost their appeal to overturn the restrictive NC-17 rating the movie was awarded.

The film, which premieres at the Toronto Film Festival in Canada next week (begs12SEP05), features a threesome sex scene between Kevin Bacon, Colin Firth and Rachel Blanchard, which censors have deemed "sexually explicit."

Thrusting in the scene required the rarely used NC-17 rating, usually reserved for the most overtly controversial movies. The rating means no one under age 17 can see the film in theatres.

Egoyan and Blanchard appeared before censors in Los Angeles on Wednesday (07SEP05) to boost the appeal but a panel of judges refused to be swayed.

Egoyan insists the rating is "an unwarranted response given the story it's telling and the way it needed to be told."