The mechanism
Because no part of the original master is used, an interpolation requires clearance only on the composition side. That removes one of the two counterparties needed for a sample, and it removes the label from the negotiation entirely. The trade is that the publishers still hold a veto and typically take a share of the new work's publishing.
A worked example
A producer replays a recognisable melody with session musicians instead of lifting the original recording. The master owner has no claim, but the original writers are credited on the new composition and share in its publishing.
What it is confused with
- Sampling A sample uses the original RECORDING and therefore needs clearance from both the master owner and the publishers. An interpolation re-records the part and needs only the publishers.
- Cover version A cover reproduces an existing song as a whole and is generally available under a compulsory mechanical licence. An interpolation places part of one work inside a new one and is not compulsory: it can be refused.
Why it matters
It is the standard route around an unclearable or unaffordable master, and it is also the most common reason a modern credits list contains writers who were not in the room.
Sources: US Copyright Office
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Related: Recoupment · Black box royalties · 360 deal