python NameError: global name “__file__” is not defined

When I run this code in python 2.7, I get this error:

Traceback (most recent call last):
File "C:Python26Libsite-packagespyutilib.subprocess-3.5.4setup.py", line 30, in <module>
    long_description = read("README.txt"),
  File "C:Python26Libsite-packagespyutilib.subprocess-3.5.4setup.py", line 19, in read
    return open(os.path.join(os.path.dirname(__file__), *rnames)).read()
NameError: global name "__file__" is not defined

code is:

import os
from setuptools import setup


def read(*rnames):
    return open(os.path.join(os.path.dirname(__file__), *rnames)).read()


setup(name="pyutilib.subprocess",
    version="3.5.4",
    maintainer="William E. Hart",
    maintainer_email="[email protected]",
    url = "https://software.sandia.gov/svn/public/pyutilib/pyutilib.subprocess",
    license = "BSD",
    platforms = ["any"],
    description = "PyUtilib utilites for managing subprocesses.",
    long_description = read("README.txt"),
    classifiers = [
        "Development Status :: 4 - Beta",
        "Intended Audience :: End Users/Desktop",
        "License :: OSI Approved :: BSD License",
        "Natural Language :: English",
        "Operating System :: Microsoft :: Windows",
        "Operating System :: Unix",
        "Programming Language :: Python",
        "Programming Language :: Unix Shell",
        "Topic :: Scientific/Engineering :: Mathematics",
        "Topic :: Software Development :: Libraries :: Python Modules"],
      packages=["pyutilib", "pyutilib.subprocess", "pyutilib.subprocess.tests"],
      keywords=["utility"],
      namespace_packages=["pyutilib"],
      install_requires=["pyutilib.common", "pyutilib.services"]
      )