Developing countries assert that the limited size of their markets renders
conventional trade retaliatory actions by them ineffective. The complaint i
s that they have no effective mechanism for forcing developed countries int
o compliance with WTO obligations that have market access consequences for
developing countries. This paper proposes a design for the use of TRIPS as
a retaliatory weapon in WTO trade disputes that would overcome some of thes
e difficulties. The proposal has many advantages: it is feasible, effective
, legal, and has certain attractive attributes that are absent in conventio
nal trade retaliation. The very presence of the threat of such retaliatory
action in domestic intellectual property legislation could lead to improved
compliance by developed countries.