A fair or reasonable level for fees for a copyright licence can be estimated by considering the hypothetical level of fees that would be agreed between a willing licensor and a willing licensee in an arm’s length negotiation. In this paper we estimate the maximum price that a licensee would be willing to pay for their use of sound recordings as specially featured entertainment in nightclubs and bars through the estimation of end customers’ willingness to pay using a stated preference survey and a mixed logit model. We find that nightclub attendees are willing to pay a positive amount for both the music they like and the presence of a DJ. Bar attendees are also willing to pay a positive amount for both dancing facilities and the presence of a DJ. The results confirm that the current fees for the use of music in nightclubs and bars are a small proportion of the amount attendees are willing to pay for it.