A tool that mangles source code into a human-unreadable form without changing its function.

Possible applications:
	* Source code is a contracted deliverable and customer relationship has soured.
	* Makes an interesting input to a peer review ... "Well, it ''compiles''.
	* Intermediate code language (.NET or Java) contains intellectual property.

Especially useful when the CodeObfuscator produces a key and is combined with a deobfuscation tool.
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A major problem with obfuscation is that stack dumps generated when errors occur are meaningless.  Some obfuscators provide (to the code author) a utility that allows the obfuscated names to be mapped back into the real names for this purpose.

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The OpenSourceInitiative definition of OpenSource specifically excludes any project whose source code has been obfuscated.

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I once wrote a "variable substituter" that replaced meaningful variables and function names with hard-to-remember names.

Before:

  result = countMessages(criteriaArray)

After:

  ruwsgfk = kjwtpd(bjkjwwvc)

It had an optional "leave it alone" list for items that were not substituted, usually for external interface reasons.
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Professional obfuscators for .NET and Java are available from http://www.preemptive.com . Semantic Designs provides an entire family of obfuscators for a wide variety of languages.
See http://www.semanticdesigns.com/Products/Obfuscators

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If you want to obfuscate your code, just use OOP :-) (CategoryJoke, really)

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Open Source Obfuscators for Java: http://java-source.net/open-source/obfuscators