The eccentric musician entered into an agreement with Revelations Perfume and Cosmetics Inc back in 2006, licensing out his name and likeness for a fragrance named after his album 3121.
However, the 'Purple Rain' singer later broke the agreement and refused to participate in media interviews or in-store events to promote the product, leading the company to begin legal proceedings against him in 2008.
"Since July 2007, despite repeated attempts by Revelations there have been virtually no communications from anyone who could commit to or coordinate any promotional efforts by Prince," the lawsuit reads.
According to Gossip Cop, a New York judge has proposed Prince pay the company $3.95m in damages for failing to meet the agreement conditions.
Prince recently paid tribute to the late singer Amy Winehouse during a headline slot at Sziget Festival in Budapest.
A second judge will confirm the amount Prince will be fined on November 1.
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