The 'license' meta-data option is not listed under:
http://docs.python.org/distutils/setupscript.html#meta-data
There are others, too, from:
$ python setup.py --help
.. snip ..
Information display options (just display information, ignore any commands)
--help-commands list all available commands
--name print package name
--version (-V) print package version
--fullname print <package name>-<version>
--author print the author's name
--author-email print the author's email address
--maintainer print the maintainer's name
--maintainer-email print the maintainer's email address
--contact print the maintainer's name if known, else the author's
--contact-email print the maintainer's email address if known, else the
author's
--url print the URL for this package
--license print the license of the package
--licence alias for --license
--description print the package description
--long-description print the long package description
--platforms print the list of platforms
--classifiers print the list of classifiers
--keywords print the list of keywords
--provides print the list of packages/modules provided
--requires print the list of packages/modules required
--obsoletes print the list of packages/modules made obsolete
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