It's debatable but Wikipedia says it is a West-German film. Wolfgang Petersen directed it, Bernd Eichinger and Dieter Geissler produced it, and the original book was written by Michael Ende, all of whom are Germans. Now most of the actors were Americans, and they filmed the movie in English. Nevertheless I wouldn't consider that to be the defining criterion (for example, Inglourious Basterds is an American movie although there was a lot of German, French and some Italian to be spoken).
I think "The Lives of Others" is a more natural-sounding translation. Not to mention the name it was released under in the States. 'The Last Laugh" belongs on this list.
You're right about the title, I corrected it. To be honest, I didn't know "The Last Laugh", so it wouldn't be advisable to include it into my quiz for now. After a first quick research, it seems to be very interesting, though. Thanks for the suggestion!