The collars have a release mechanism with an internal clock that researchers can program. Researchers usually set the timer so that the collar will fall off shortly before the batteries are drained, and the collar is no longer transmitting.
Also, the collars are attached with steel nuts and brass bolts that eventually corrode in a saltwater environment, causing the collar to fall off even if the release mechanism fails. Once they fall off, a GPS location allows researchers to find the collar (if in a retrievable spot), download any stored data, refurbish, and send it out again to save money.