American business tycoons Michael Bloomberg and Bill Gates announced on Wednesday that they have created a $4 million anti-tobacco fund that will help developing countries deflect legal actions over anti-smoking measures.

The two philanthropists have launched individual campaigns against smoking and tobacco use in countries like China and India, but they decided to work together to step up the battle. They are also encouraging other foundations to contribute to the "Anti-Tobacco Trade Litigation Fund."

The fund is expected to help countries draft regulations that they can use to counter the legal challenges thrown by the tobacco industry.

Bloomberg cited Phillip Morris International as one of the tobacco manufacturers that is using international trade agreements to contest the anti-smoking campaign of the Uruguay government, according to the Wall Street Journal.

"This new fund is going to help countries who are sued by the tobacco industry fight back in court and win," Bloomberg told reporters in a telebriefing.

Gates added that they chose to support the developing countries because they don't have enough resources to face legal challenges. Other countries like Australia, the U.K., and Ireland also faced legal challenges from cigarette makers, but they were quick to defend their anti-smoking policies because of the resources that they have, BBC News reported.

"Country leaders who are trying to protect their citizens from the harms of tobacco should not be deterred by threats of costly legal challenges from huge tobacco companies," Gates said during the briefing.

"Australia won its first case, which sends a strong message. But smaller, developing countries don't have the same resources."

Funding requests from the Anti-Tobacco Trade Litigation Fund will be subject to review since they will need to look at the population size that will benefit from the anti-smoking law.