Originally Posted by DuckieTigger
Restrictions on Alteration. You may not rename, edit or create any derivative works from the SOFTWARE PRODUCT, other than subsetting when embedding them in documents.
So... it's legal to embed the entire font in a document? (If creating subsets is legal, a 100% subset would have to be -- that's what a good few simpleminded PDF creators do when embedding fonts, after all).
That gives a form of apparently-legal distribution after all, as long as the recipient knows enough to be able to extract the thing from the PDF file again. Curious hole, but I guess they had no choice: a font which prohibits embedding isn't going to get used.