Hi,
It's called a "collar clash" error. The collar is the "third die" that people don't often think about. It comes in around the planchet to hold a coin in place when it is struck. In this case, the collar die does not come in correctly or the planchet does not sit properly and the coin struck shows damage like that that is caused by the collar. It is an error. You can look on ebay or do a search for collar clash errors and get an idea of the value.
Bill