The film, which won the 10th Panorama Audience Award at the Berlin Film Festival, made its debut in Israel over the weekend and will be screened in 80 cinemas in France starting April.
The movie was also purchased for distribution in European countries, Canada, Korea, Taiwan and South American countries.
"Lemon Tree" tells the story of a Palestinian widow living next to the Israeli border, who is forced to chop down her cherished lemon grove to accommodate the security demands for the Israeli defense minister and his family who live right across the border from her. The widow fights the decision in court, but ultimately fails.
IFC Entertainment President Jonathan Sehring said after the contract was signed Saturday that Riklis' film managed to say more about the situation in the Middle East than any newspaper headline, and that he was excited about the opportunity to bring the film's story to the American audience.
Eldad Beck contributed to this report