We study a variational problem describing an incoherent interface between a
rigid inclusion and a linearly elastic matrix. The elastic material is all
owed to slip relative to the inclusion along the interface, and the resulti
ng mismatch is penalized by an interfacial energy term that depends on the
surface gradient of the relative displacement. The competition between the
elastic and interfacial energies induces a threshold effect when the interf
acial energy density is non-smooth: small inclusions are coherent (no misma
tch); sufficiently large inclusions are incoherent. We also show that the r
elaxation of the energy functional can be written as the sum of the bulk el
astic energy functional and the tangential quasiconvex envelope of the inte
rfacial energy functional.