Illegal copying of music, such as making copies of your friends' CDs rather than buying your own. This word was invented by the RIAA (Recording Industry Association of America) in the mid-1980s to attempt to put negative social pressure on people who would do such copying. The RIAA released a drawing of a "scoodler"; imagine a Grinch-like creature holding an audio cassette in each hand.
"Scoodling hurts your favorite musicians." Also see Billboard Magazine, August 10, 1985 issue.