Local media report that Google.cn (GOOG), which was launched by Google last month, is believed to be operating without a compulsory Internet Content Provider (ICP) license.

However, Xinhua reports that Google.cn uses the ICP license from Ganji.com, an online community that specializes in providing life-related information. In return, Google reportedly has agreed to provide Ganji technical support and pay Ganji a certain percentage of income from Google.cn.

Because only Chinese-owned companies can own an ICP license, it is common for companies like Yahoo (YHOO) and eBay (EBAY) to use local companies' licenses. Yahoo and eBay previously used the licenses from 3721 and Eachnet, respectively.

China's Ministry of Information Industry is investigating the case, and Google is in talks with the government for a solution.