  Unsteady activity of gamma-ray burst sources leads to internal shocks in
their emergent relativistic wind. We study the emission spectra from such
shocks, assuming that they produce a power-law distribution of relativistic
electrons and posses strong magnetic fields. The synchrotron radiation emitted
by the accelerated electrons is Compton up-scattered multiple times by the same
electrons. A substantial component of the scattered photons acquires high
energies and produces e+e- pairs. The pairs transfer back their kinetic energy
to the radiation through Compton scattering. The generic spectral signature
from pair creation and multiple Compton scattering is highly sensitive to the
radius at which the shock dissipation takes place and to the Lorentz factor of
the wind. The entire emission spectrum extends over a wide range of photon
energies, from the optical regime up to TeV energies. For reasonable values of
the wind parameters, the calculated spectrum is found to be in good agreement
with the burst spectra observed by BATSE.
