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Well, you don't necessarily have to avoid all font embedding, but most folks don't embed body fonts, and you definitely should not embed a font that doesn't specifically allow embedding in an EPUB (which AFAIK that one doesn't unless you have a specific agreement with Monotype to the contrary).
Incidentally, this error would be flagged by epubcheck as well. You should definitely run your book through that before submitting it anywhere.
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